Taxes Management Act 1970

105 Evidence in cases of fraud or wilful default. [1952 s.504; 1965 Sch.X 1(1); 1966 Sch.VI 13.] U.K.

(1) Statements made or documents produced by or on behalf of a person shall not be inadmissable in any such proceedings as are mentioned in subsection (2) below by reason only that it has been drawn to his attention that—

[(a) pecuniary settlements may be accepted instead of a penalty being determined, or proceedings being instituted, in relation to any tax F1 ,]

(b) though no undertaking can be given as to whether or not the Board will accept such a settlement in the case of any particular person, it is the practice of the Board to be influenced by the fact that a person has made a full confession of any [fraudulent conduct F2 ] to which he had been a party and has given full facilities for investigation,

and that he was or may have been induced thereby to make the statements or produce the documents.

(2) The proceedings mentioned in subsection (1) above are—

(a) any criminal proceedings against the person in question for any form of [fraudulent conduct F2 ] in connection with or in relation to tax F3 , and

(b) any proceedings against him for the recovery of any [tax due from him F4 ] F5 .[and

(c) any proceedings for a penalty or on appeal against the determination of a penalty F6 .]

Textual Amendments

F1 Finance Act 1989 s. 168(5)(a).Previously

“(a) in relation to tax(a), the Board may accept pecuniary settlements instead of instituting proceedings,”

a

SeeIncome and Corporation Taxes Act 1970 s.537andSch.14 para.27(4)— “tax”

ins.105includes excess profits tax and the profits tax.

F2 Finance Act 1989 s. 149(5)but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983. Previously

“fraud or default”

and

“fraud or wilful default”.

F3 SeeIncome and Corporation Taxes Act 1970 s.537andSch.14 para.27(4)— “tax”

ins.105includes excess profits tax and the profits tax.

F4 Finance Act 1989 s. 168(5)(b).Previously

“sum due from him, whether by way of tax or penalty, in connection with or in relation to tax(a)

(b)”

(a)

SeeIncome and Corporation Taxes Act 1970 s.537andSch.14 para.27(4)— “tax”

ins.105includes excess profits tax and the profits tax.

(b)

SeeFinance Act 1966 s.27andSch.6 para.23(7)(b)andS.I. 1966 No.1191 regn.4 (inPart III Vol.5)—application of this section in relation to penalties underpara.23 (transitional relief for companies with overseas trading income).

F5 SeeFinance Act 1981 s.134andSch.17 para.18—application of this provision to the special tax on banking deposits.

F6 Finance Act 1989 s. 168(5)(c).