108.—(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.