PART 3REPORTING FUNDS AND THE TREATMENT OF PARTICIPANTS IN REPORTING FUNDS
CHAPTER 10BREACHES OF REPORTING FUND REQUIREMENTS
Types of breaches108
1
This Chapter applies if a reporting fund is in breach of a requirement imposed in this Part.
2
A breach of a requirement imposed in this Part is—
a
a minor breach, or
b
a serious breach.
3
For the purposes of these Regulations, a breach of a requirement imposed in this Part is a “serious breach” if it is—
a
a breach specified as a serious breach in a provision of this Chapter, or
b
a breach which is not a minor breach.
4
For the purposes of these Regulations, a breach of a requirement imposed in this Part is a “minor breach” if it is a breach (other than a breach specified as a serious breach in a provision of this Chapter)—
a
for which there is a reasonable excuse, or
b
which is inadvertent and remedied as soon as reasonably possible.
This paragraph is subject to the following provisions of this regulation.
5
For the purposes of this Part a minor breach is not regarded as a breach if the reporting fund corrects the breach without any HMRC intervention.
6
For the purposes of these Regulations there is an “HMRC intervention” in relation to a reporting fund if HMRC request the fund to provide them with information relating to a requirement imposed in this Part. This is subject to paragraph (7).
7
There is no HMRC intervention in relation to a reporting fund if—
a
the fund takes the initiative to correct a minor breach, and
b
HMRC request the fund to provide them with information so that they may deal with the initiative taken.
8
Regulation 109 deals with the consequences of minor breaches.
9
Regulation 114 deals with the consequences of serious breaches.