Taxation (International and Other Provisions) Bill

House of Commons

Session 2009 - 10
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Other Bills before Parliament

Taxation (International and Other Provisions) Bill

Taxation (International and Other Provisions) Bill
Schedule 7 — Miscellaneous relocations
Part 15 — Relocation of section 118 of FA 1998
337

(2)
If directions under section 43E(1) are in force in relation to the
making of claims of any description to an officer of Revenue and
Customs, claims of that description may be made to an officer in
accordance with the directions.
(3)
Subsections (1) and (2) apply despite any enactment or subordinate
5
legislation which requires claims of the description concerned to be
made in writing or by notice.
(4)
If directions under section 43E(1) are in force in relation to the
making of claims of any description, claims of that description that
are made without producing the claim in writing must be made in
10
accordance with the directions.
(5)
In subsection (3) “subordinate legislation” has the same meaning as
in the Interpretation Act 1978.
(6)
Section 43E(9) read with section 43E(10) (interpretation of references
to making a claim, and meaning of “claim”) applies for the purposes
15
of subsections (1) to (4) (as well as for those of section 43E(1) to (6)).”
Finance Act 1998 (c. 36)
87
FA 1998 is amended as follows.
88
Omit section 118 (claims for income tax purposes).
Income Tax (Trading and Other Income) Act 2005 (c. 5)
20
89
ITTOIA 2005 is amended as follows.
90    (1)
Amend section 878 (other definitions) as follows.
      (2)
In subsection (3) (claims and elections) for “section 118 of FA 1998”
substitute “section 43E(1) of TMA 1970”.
      (3)
In subsection (4) for “(in” substitute “more generally (but in”.
25
Income Tax Act 2007 (c. 3)
91
ITA 2007 is amended as follows.
92
In section 989 (interpretation of Income Tax Acts) in the definition of
“notice” for “section 118 of FA 1998” substitute “section 43E(1) of TMA
1970”.
30
93    (1)
Amend section 1020 (claims and elections) as follows.
      (2)
In subsection (1) for “section 118 of FA 1998” substitute “section 43E(1) of
TMA 1970”.
      (3)
In subsection (2) for “(in” substitute “more generally (but in”.

Taxation (International and Other Provisions) Bill
Schedule 7 — Miscellaneous relocations
Part 16 — Relocation of section 144 of FA 2000
338

Part 16
Relocation of section 144 of FA 2000
Taxes Management Act 1970 (c. 9)
94
TMA 1970 is amended as follows.
95
After section 106 insert—
5
“Evasion
106A
Offence of fraudulent evasion of income tax
(1)
A person commits an offence if that person is knowingly concerned
in the fraudulent evasion of income tax by that or any other person.
(2)
A person guilty of an offence under this section is liable—
10
(a)
on summary conviction, to imprisonment for a term not
exceeding 12 months or a fine not exceeding the statutory
maximum, or both, or
(b)
on conviction on indictment, to imprisonment for a term not
exceeding 7 years or a fine, or both.
15
(3)
In the application of subsection (2)(a)—
(a)
in England and Wales in relation to offences committed
before the commencement of section 282(3) of the Criminal
Justice Act 2003, and
(b)
in Northern Ireland,
20

for “12 months” substitute “6 months”.
(4)
This section does not apply to things done or omitted before 1st
January 2001.”
Finance Act 2000 (c. 17)
96
FA 2000 is amended as follows.
25
97
Omit section 144 (offence of fraudulent evasion of income tax).
Serious Organised Crime and Police Act 2005 (c. 15)
98
The Serious Organised Crime and Police Act 2005 is amended as follows.
99
In section 76(3)(n) (offence under section 144 of FA 2000 is one for which a
financial reporting order may be made) for “section 144 of the Finance Act
30
2000 (c. 17)” substitute “section 106A of the Taxes Management Act 1970”.
Serious Crime Act 2007 (c. 27)
100
The Serious Crime Act 2007 is amended as follows.
101   (1)
Amend Schedule 1 as follows.
      (2)
In paragraph 8(3) (offence under section 144 of FA 2000 is a serious offence
35
in England and Wales) for “section 144 of the Finance Act 2000 (c. 17)”
substitute “section 106A of the Taxes Management Act 1970”.

Taxation (International and Other Provisions) Bill
Schedule 7 — Miscellaneous relocations
Part 17 — Relocation of section 199 of FA 2003
339

      (3)
In paragraph 24(3) (offence under section 144 of FA 2000 is a serious offence
in Northern Ireland) for “section 144 of the Finance Act 2000 (c. 17)”
substitute “section 106A of the Taxes Management Act 1970”.
Part 17
Relocation of section 199 of FA 2003
5
Taxes Management Act 1970 (c. 9)
102
TMA 1970 is amended as follows.
103
After section 18A insert—
“18B
Savings income: regulations about European and international aspects
(1)
The Treasury may make regulations for implementing and for
10
dealing with matters arising out of or related to—
(a)
any EU obligation created with a view to ensuring the
effective taxation of savings income under the law of the
United Kingdom and the laws of the other member States,
and
15
(b)
any arrangements made with a territory other than a member
State with a view to ensuring the effective taxation of savings
income under the law of the United Kingdom and the law of
the other territory.
(2)
In this section “savings income” means—
20
(a)
interest, apart from interest of a prescribed description, or
(b)
other sums of a prescribed description.
(3)
The power to make regulations under this section is exercisable by
statutory instrument.
(4)
A statutory instrument containing regulations under this section is
25
subject to annulment in pursuance of a resolution of the House of
Commons.
18C
Regulations under section 18B: provision about “paying agents”
(1)
Regulations under section 18B may, in particular, require paying
agents—
30
(a)
to obtain and verify prescribed descriptions of information
about the identity and residence of relevant payees to whom
they make savings income payments, and
(b)
to provide to the Commissioners for Her Majesty’s Revenue
and Customs, or an officer of Revenue and Customs,
35
prescribed descriptions of information about relevant payees
to whom they make savings income payments and about the
savings income payments which they make to them.
(2)
Regulations under section 18B may include provision for the
inspection on behalf of the Commissioners of books, documents and
40
other records of persons who are, or appear to an officer to be, paying
agents.

Taxation (International and Other Provisions) Bill
Schedule 7 — Miscellaneous relocations
Part 17 — Relocation of section 199 of FA 2003
340

(3)
In this section “paying agents” means persons of a prescribed
description who make savings income payments to other persons.
(4)
In this section “relevant payees” means—
(a)
persons of a prescribed description who are resident (within
the meaning of regulations under section 18B) in a prescribed
5
territory, and
(b)
persons of any such other description as may be prescribed.
(5)
For the purposes of this section, a person makes savings income
payments to another person if the person—
(a)
makes payments of savings income to the other person, or
10
(b)
secures the payment of savings income for the other person.
(6)
In this section “savings income” has the same meaning as in section
18B.
(7)
The descriptions of persons who may be prescribed under
subsection (3) include, in particular, public officers and government
15
departments.
(8)
The only territories which may be prescribed under subsection (4)(a)
are—
(a)
the other member States, and
(b)
territories with which arrangements such as are mentioned in
20
section 18B(1)(b) have been made.
18D
Content of regulations under section 18B: supplementary provision
(1)
Regulations under section 18B may include provision for notices
under such regulations to be combined with notices under sections
17 and 18.
25
(2)
Regulations under section 18B may include provision about the time
at or within which, and the manner in which, any requirement
imposed by such regulations is to be complied with.
(3)
Regulations under section 18B may include provision for penalties
for failure to comply with requirements imposed by such
30
regulations, including provision applying any provision of this Act
about the determination of penalties or any other matter relating to
penalties.
(4)
Regulations under section 18B—
(a)
may make different provision for different cases or
35
descriptions of case, and
(b)
may include incidental, supplemental, consequential and
transitional provision and savings.
18E
Interpretation of sections 18B to 18D: “prescribed” etc
(1)
In sections 18B to 18D “prescribed” means prescribed by regulations
40
under section 18B.
(2)
The following provisions do not apply for the purposes of sections
18B to 18D—
(a)
section 118 of this Act (interpretation), and

Taxation (International and Other Provisions) Bill
Schedule 7 — Miscellaneous relocations
Part 18 — Relocation of section 61 of F(No.2)A 2005
341

(b)
section 18 of ITA 2007 (meaning of “savings income” in the
Income Tax Acts).”
104   (1)
Amend the first column of the Table in section 98 (special returns etc) as
follows.
      (2)
Omit the entry for regulations under section 199 of the Finance Act 2003.
5
Finance Act 2003 (c. 14)
105
FA 2003 is amended as follows.
106
Omit section 199 (savings income: power to make regulations in connection
with Community obligations and international arrangements).
Part 18
10
Relocation of section 61 of F(No.2)A 2005
Finance Act 1998 (c. 36)
107
FA 1998 is amended as follows.
108   (1)
Amend Schedule 18 (company tax returns, assessments and related matters)
as follows.
15
      (2)
After paragraph 87 insert—
“Part 10A
SEs
Company ceasing to be UK resident on formation of SE by merger
87A   (1)
Sub-paragraph (2) applies if at any time a company ceases to be
20
resident in the United Kingdom in the course of the formation of
an SE by merger, whether or not the company continues to exist
after the formation of the SE.
      (2)
The other Parts of this Schedule apply after that time, but in
relation to liabilities accruing and matters arising before that
25
time—
(a)
as if the company were still resident in the United
Kingdom, and
(b)
if the company has ceased to exist, as if the SE were the
company.
30
SE ceasing to be UK resident
87B   (1)
Sub-paragraph (2) applies if at any time an SE—
(a)
transfers its registered office from the United Kingdom,
and
(b)
ceases to be resident in the United Kingdom.
35
      (2)
The other Parts of this Schedule apply after that time, but in
relation to liabilities accruing and matters arising before that time,
as if the SE were still resident in the United Kingdom.

Taxation (International and Other Provisions) Bill
Schedule 7 — Miscellaneous relocations
Part 19 — Relocation of paragraph 13 of Schedule 13 to FA 2007
342

Meaning of SE
87C
In this Part “SE” means a European public limited-liability
company (or Societas Europaea) within the meaning of Council
Regulation (EC) No. 2157/2001 on the Statute for a European
company.”
5
      (3)
In the table in paragraph 98 (index of defined expressions) before the entry
for “Self-assessment” insert—

“SE (in Part 10A)
paragraph 87C”

Finance (No. 2) Act 2005 (c. 22)
109
F(No.2) A 2005 is amended as follows.
10
110
Omit section 61 (continuity for transitional purposes in cases involving SEs).
Part 19
Relocation of paragraph 13 of Schedule 13 to FA 2007
Income Tax Act 2007 (c. 3)
111
ITA 2007 is amended as follows.
15
112
After section 925 insert—
“Repos
925A
Creditor repos
(1)
Subsection (2) applies if a company (“the lender”) has a creditor repo
for the purposes of Chapter 10 of Part 6 of CTA 2009 (see section 543
20
of that Act).
(2)
Sections 918 to 925 have effect in relation to the lender while the
arrangement is in force as if—
(a)
the lender paid the borrower amounts which are
representative of the income payable on the securities that are
25
initially sold,
(b)
the payments were made under requirements of the
arrangement, and
(c)
the payments were made on the dates on which the income is
payable.
30
(3)
For the purposes of subsection (2), an arrangement is in force from
the time when the securities are initially sold until the earlier of—
(a)
the time when the subsequent sale of the securities, or similar
securities, takes place, and
(b)
the time when it becomes apparent that that sale will not take
35
place.