Finance (No. 2) Act 2017

“Relevant offshore tax non-compliance” U.K.

3 (1) At the end of the 2016-17 tax year a person has “relevant offshore tax non-compliance” to correct if— U.K.

(a) Conditions A and B are satisfied in respect of any offshore tax non-compliance committed by that person on or before 5 April 2017 (“the original offshore tax non-compliance”), and

(b) Condition C will be satisfied on the relevant date (see paragraph 6).

(2) Where the original offshore tax non-compliance committed by a person has been corrected in part by the end of the tax year 2016-17, the person's “relevant offshore tax non-compliance” is the uncorrected part of the original offshore tax non-compliance.

4 U.K. Condition A is that the original offshore tax non-compliance has not been fully corrected before the end of the tax year 2016-17 (see paragraph 13).

5 U.K. Condition B is that—

(a) the original offshore tax non-compliance involved a potential loss of revenue when it was committed, and

(b) if the original offshore tax non-compliance has been corrected in part by the end of the tax year 2016-17, the uncorrected part at that time involved a potential loss of revenue.

6 (1) Condition C is that on the relevant date it is lawful, on the assumptions set out in sub-paragraph (2), for HMRC to assess the person concerned to any tax the liability to which would have been disclosed to or discovered by HMRC if on that date— U.K.

(a) where none of the original offshore tax non-compliance was corrected before the end of the 2016-17 tax year, HMRC were aware of the information missing as a result of the failure to correct that tax non-compliance, or

(b) where the original offshore tax non compliance was corrected in part before that time, HMRC were aware of the information missing as a result of the failure to correct the rest of that tax non-compliance.

(2) The assumptions are—

(a) that paragraph 26 is to be disregarded, and

(b) where the tax at stake is inheritance tax, that the relevant offshore tax non-compliance is not corrected before the relevant date

(3) In this paragraph “the relevant date” is—

(a) where the tax at stake is income tax or capital gains tax, 6 April 2017, and

(b) where the tax at stake is inheritance tax, the day after the day on which this Act is passed.