Finance Act 2021

126 Financial institution notices U.K.

(1) Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.

(2) After paragraph 4 insert—

“4A “Power to obtain information and documents from financial institutions

(1) An officer of Revenue and Customs may by notice in writing require a financial institution—

(a) to provide information, or

(b) to produce a document,

if conditions A and B are met.

(2) Condition A is that the information or document is, in the reasonable opinion of the officer giving the notice, of a kind that it would not be onerous for the institution to provide or produce.

(3) Condition B is that the information or document is reasonably required by the officer—

(a) for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”), or

(b) for the purpose of collecting a tax debt of the taxpayer.

(4) In this Schedule, “financial institution notice” means a notice under this paragraph.

(5) A financial institution notice may be given by an officer of Revenue and Customs only if—

(a) the officer is an authorised officer of Revenue and Customs, or

(b) an authorised officer of Revenue and Customs has agreed to the giving of the notice.

(6) A financial institution notice must name the taxpayer to whom it relates.

(7) An officer of Revenue and Customs—

(a) must give a copy of a financial institution notice to the taxpayer to whom it relates, and

(b) must give the taxpayer a summary of the reasons why an officer of Revenue and Customs requires the information and documents.

(8) An application (without notice) may be made to the tribunal by, or with the agreement of, an authorised officer of Revenue and Customs to disapply any of the requirements under sub-paragraph (6) or (7).

(9) The tribunal must grant the application to disapply the requirement under sub-paragraph (6) if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax.

(10) The tribunal must grant the application to disapply a requirement under sub-paragraph (7) if it is satisfied that complying with the requirement might prejudice the assessment or collection of tax.”

(3) In paragraph 6 (notices)—

(a) in sub-paragraph (1), after “2,” insert “ 4A, ”;

(b) in sub-paragraph (4), after “4” insert “ , 4A ”.

(4) After paragraph 61 insert—

“61ZA “Financial institution

(1) In this Schedule “financial institution” means—

(a) a financial institution under the CRS other than one which is such an institution because (and only because) it is an investment entity within section VIII (A)(6)(b) of the CRS, or

(b) a person who issues credit cards.

(2) In this paragraph “the CRS” means the common reporting standard for automatic exchange of financial account information developed by the Organisation for Economic Co-operation and Development, as that standard has effect from time to time.”

(5) As soon as reasonably practicable after the end of each financial year, the Commissioners for Her Majesty's Revenue and Customs must provide the Treasury with—

(a) information about the number of financial institution notices given during that financial year, and

(b) such other information (if any) relating to financial institution notices as the Treasury may reasonably require.

(6) Information received under subsection (5) must be included in a report laid before the House of Commons by the Treasury.

(7) The report mentioned in subsection (6) must be laid not later than 31 January following the end of the financial year to which the information relates.

(8) For the purposes of subsections (5) to (7)—

• “financial institution notice” means a notice under paragraph 4A of Schedule 36 to FA 2008;

• each of the following is a “financial year”—

  (a)

  the period beginning with the date on which this Schedule comes into force and ending with 31 March 2022, and

  (b)

  each successive period of 12 months.

(9) The amendments made by subsections (2) to (4) have effect—

(a) for the purpose of checking the tax position of a taxpayer as regards periods or tax liabilities whenever arising, or

(b) for the purpose of collecting a tax debt of a taxpayer whenever arising.