Taxes Management Act 1970 (c. 9)

PART X U.K. PENALTIES, ETC.

Modifications etc. (not altering text)

C1 Part X (ss. 93-107) applied (with modifications) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 16(1)(b), 177(4), Sch. 2

C2 Part X (ss 93-107) applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 122(2)(3)

C3 Pt. 10 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), s. 117(1)(b), Sch. 18; S.I. 1998/3173, art. 2

C4 Pt. 10 power to apply conferred (N.I.) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), Sch. 1 para. 7B(5A) (as inserted (28.7.2000) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 80(4), 86 (with s. 83(6)))

C5 Pt. 10 applied (with modifications) (E.W.S.) (1.9.2012) by The National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012 (S.I. 2012/1868), regs. 1, 24

C6 Pt. 10 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 35 para. 10

C7 Pt. 10 applied (with modifications) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 12)

C8 Pt. 10 applied (with modifications) by Social Security Contributions and Benefits Act 1992 (c. 4), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 3)

[F1 Offshore income, assets and activities U.K.

Textual Amendments

F1 Ss. 106B-106H and cross-heading inserted (7.10.2017 in relation to the tax year commencing on 6.4.2017 and subsequent tax years) by Finance Act 2016 (c. 24), s. 166(1)(2); S.I. 2017/970, art. 2

106B Offence of failing to give notice of being chargeable to tax U.K.

(1) A person who is required by section 7 to give notice of being chargeable to income tax or capital gains tax (or both) for a year of assessment and who has not given that notice by the end of the notification period commits an offence if—

(a) the tax in question is chargeable (wholly or in part) on or by reference to offshore income, assets or activities, and

(b) the total amount of income tax and capital gains tax that is chargeable for the year of assessment on or by reference to offshore income, assets or activities exceeds the threshold amount.

(2) It is a defence for a person accused of an offence under this section to prove that the person had a reasonable excuse for failing to give the notice required by section 7.

(3) In this section “the notification period” has the same meaning as in section 7 (see subsection (1C) of that section).

106C Offence of failing to deliver return U.K.

(1) A person who is required by a notice under section 8 to make and deliver a return for a year of assessment commits an offence if—

(a) the return is not delivered by the end of the withdrawal period,

(b) an accurate return would have disclosed liability to income tax or capital gains tax (or both) that is chargeable for the year of assessment on or by reference to offshore income, assets or activities, and

(c) the total amount of income tax and capital gains tax that is chargeable for the year of assessment on or by reference to offshore income, assets or activities exceeds the threshold amount.

(2) It is a defence for a person accused of an offence under this section to prove that the person had a reasonable excuse for failing to deliver the return.

(3) In this section “the withdrawal period” has the same meaning as in section 8B (see subsection (6) of that section).

106D Offence of making inaccurate return U.K.

(1) A person who is required by a notice under section 8 to make and deliver a return for a year of assessment commits an offence if, at the end of the amendment period—

(a) the return contains an inaccuracy the correction of which would result in an increase in the amount of income tax or capital gains tax (or both) that is chargeable for the year of assessment on or by reference to offshore income, assets or activities, and

(b) the amount of that increase exceeds the threshold amount.

(2) It is a defence for a person accused of an offence under this section to prove that the person took reasonable care to ensure that the return was accurate.

(3) In this section “the amendment period” means the period for amending the return under section 9ZA.

106E Exclusions from offences under sections 106B to 106D U.K.

(1) A person is not guilty of an offence under section 106B, 106C or 106D if the capacity in which the person is required to give the notice or make and deliver the return is—

(a) as a relevant trustee of a settlement, or

(b) as the executor or administrator of a deceased person.

(2) The Treasury may by regulations provide that a person is not guilty of an offence under section 106B, 106C or 106D if—

(a) conditions specified in the regulations are met, or

(b) circumstances so specified exist.

(3) The conditions may (in particular) include conditions in relation to the income, assets or activities on or by reference to which the tax in question is chargeable.

106F Offences under sections 106B to 106D: supplementary provision U.K.

(1) Where a period of time is extended under subsection (2) of section 118 by HMRC, the tribunal or an officer (but not where a period is otherwise extended under that subsection), any reference in section 106B, 106C or 106D to the end of the period is to be read as a reference to the end of the period as so extended.

(2) The Treasury may by regulations specify the amount (which must not be less than £25,000) that is to be the threshold amount for the purposes of sections 106B to 106D.

(3) The Treasury may by regulations make provision as to the calculation for the purposes of sections 106B to 106D of—

(a) the amount of tax that is chargeable on or by reference to offshore income, assets or activities, and

(b) the increase in the amount of tax that is so chargeable as a result of correcting an inaccuracy.

(4) In sections 106B to 106D and this section “offshore income, assets or activities” means—

(a) income arising from a source in a territory outside the United Kingdom,

(b) assets situated or held in a territory outside the United Kingdom, or

(c) activities carried on wholly or mainly in a territory outside the United Kingdom.

(5) In subsection (4), “assets” has the meaning given in section 21(1) of the 1992 Act, but also includes sterling.

106G Penalties for offences under sections 106B to 106D U.K.

(1) A person guilty of an offence under section 106B, 106C or 106D is liable on summary conviction—

(a) in England and Wales, to a fine or to imprisonment for a term not exceeding 51 weeks or to both, and

(b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding 6 months or to both.

(2) In relation to an offence committed before the coming into force of section 281(5) of the Criminal Justice Act 2003, the reference in subsection (1)(a) to 51 weeks is to be read as a reference to 6 months.

106H Regulations under sections 106E and 106F U.K.

(1) This section makes provision about regulations under sections 106E and 106F.

(2) If the regulations contain a reference to a document or any provision of a document and it appears to the Treasury that it is necessary or expedient for the reference to be construed as a reference to that document or that provision as amended from time to time, the regulations may make express provision to that effect.

(3) The regulations—

(a) may make different provision for different cases, and

(b) may include incidental, supplemental, consequential and transitional provision and savings.

(4) The regulations are to be made by statutory instrument.

(5) An instrument containing the regulations is subject to annulment in pursuance of a resolution of the House of Commons.]