Finance Act 2000

Part VIII U.K. Evasion, misdeclaration and neglect

Criminal offences: Evasion U.K.

92 (1) A person is guilty of an offence if he is knowingly concerned in, or in the taking of steps with a view to— U.K.

(a) the fraudulent evasion by that person of any levy with which he is charged; or

(b) the fraudulent evasion by any other person of any levy with which that other person is charged.

(2) The references in sub-paragraph (1) to the evasion of levy include references to obtaining, in circumstances where there is no entitlement to it, either a tax credit or a repayment of levy.

(3) A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4))—

(a) on summary conviction, to a penalty of [F1 the statutory maximum] [F1 £20,000] or to imprisonment for a term not exceeding six months, or to both;

(b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4) In the case of any offence under this paragraph, where [F2 the statutory maximum] [F2 the amount of £20,000 mentioned in sub-paragraph (3)(a)] is less than three times the sum of the amounts of levy which are shown to be amounts that were or were intended to be evaded, the penalty on summary conviction shall be the amount equal to three times that sum (instead of [F2 the statutory maximum] [F2 the amount of £20,000 mentioned in sub-paragraph (3)(a)]).

(5) For the purposes of sub-paragraph (4) the amounts of levy that were or were intended to be evaded shall be taken to include—

(a) the amount of any tax credit, and

(b) the amount of any repayment of levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(6) In determining for the purposes of sub-paragraph (4) how much levy (in addition to any amount falling within sub-paragraph (5)) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayment of levy to which he was, or would have been, entitled.

Textual Amendments

F1 Sum in Sch. 6 para. 92(3)(a) substituted for words (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 2 para. 11(2)(a) (with reg. 5(1))

F2 Words in Sch. 6 para. 92(4) substituted (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 2 para. 11(2)(b) (with reg. 5(1))

Criminal offences: Misstatements U.K.

93 (1) A person is guilty of an offence if, with the requisite intent and for purposes connected with the levy— U.K.

(a) he produces or provides, or causes to be produced or provided, any document which is false in a material particular, or

(b) he otherwise makes use of such a document;

and in this sub-paragraph “the requisite intent” means the intent to deceive any person or to secure that a machine will respond to the document as if it were a true document.

(2) A person is guilty of an offence if, in providing any information under any provision made by or under this Schedule—

(a) he makes a statement which he knows to be false in a material particular; or

(b) he recklessly makes a statement which is false in a material particular.

(3) A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4))—

(a) on summary conviction, to a penalty of [F3 the statutory maximum] [F3 £20,000] or to imprisonment for a term not exceeding six months, or to both;

(b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4) In the case of any offence under this paragraph, where—

(a) the document referred to in sub-paragraph (1) is a return [F4 or other notification] required under any provision made by or under this Schedule, or

(b) the information referred to in sub-paragraph (2) is contained in or otherwise relevant to such a return [F5 or notification],

the amount of the penalty on summary conviction shall be whichever is the greater of [F6 the statutory maximum] [F6 the amount of £20,000 mentioned in sub-paragraph (3)(a)] and the amount equal to three times the sum of the amounts (if any) by which the return [F7 or notification] understates any person’s liability to levy.

(5) In sub-paragraph (4) the reference to the amount by which any person’s liability to levy is understated shall be taken to be equal to the sum of—

(a) the amount (if any) by which his gross liability was understated; and

(b) the amount (if any) by which any entitlements of his to tax credits and repayments of levy were overstated.

(6) In sub-paragraph (5) “gross liability” means liability to levy before any deduction is made in respect of any entitlement to any tax credit or repayments of levy.

Textual Amendments

F3 Sum in Sch. 6 para. 93(3)(a) substituted for words (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 2 para. 11(3)(a) (with reg. 5(1))

F4 Words in Sch. 6 para. 93(4)(a) inserted (10.7.2003) by Finance Act 2003 (c. 14), s. 192(7)(a)

F5 Words in Sch. 6 para. 93(4)(b) inserted (10.7.2003) by Finance Act 2003 (c. 14), s. 192(7)(b)

F6 Words in Sch. 6 para. 93(4) substituted (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 2 para. 11(3)(b) (with reg. 5(1))

F7 Words in Sch. 6 para. 93(4) inserted (10.7.2003) by Finance Act 2003 (c. 14), s. 192(7)(b)

Criminal offences: Conduct involving evasions or misstatements U.K.

94 (1) A person is guilty of an offence under this paragraph if his conduct during any particular period must have involved the commission by him of one or more offences under the preceding provisions of this Part of this Schedule. U.K.

(2) For the purposes of any proceedings for an offence under this paragraph it shall be immaterial whether the particulars of the offence or offences that must have been committed are known.

(3) A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4))—

(a) on summary conviction, to a penalty of [F8 the statutory maximum] [F8 £20,000] or to imprisonment for a term not exceeding six months, or to both;

(b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4) In the case of any offence under this paragraph, where [F9 the statutory maximum] [F9 the amount of £20,000 mentioned in sub-paragraph (3)(a)] is less than three times the sum of the amounts of levy which are shown to be amounts that were or were intended to be evaded by the conduct in question, the penalty on summary conviction shall be the amount equal to three times that sum (instead of [F9 the statutory maximum] [F9 the amount of £20,000 mentioned in sub-paragraph (3)(a)]).

(5) For the purposes of sub-paragraph (4) the amounts of levy that were or were intended to be evaded by any conduct shall be taken to include—

(a) the amount of any tax credit, and

(b) the amount of any repayment of levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(6) In determining for the purposes of sub-paragraph (4) how much levy (in addition to any amount falling within sub-paragraph (5)) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayments of levy to which he was, or would have been, entitled.

Textual Amendments

F8 Sum in Sch. 6 para. 94(3)(a) substituted for words (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 2 para. 11(4)(a) (with reg. 5(1))

F9 Words in Sch. 6 para. 94(4) substituted (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 2 para. 11(4)(b) (with reg. 5(1))

Criminal offences: Preparations for evasion U.K.

95 (1) Where a person— U.K.

(a) becomes a party to any agreement under or by means of which a supply of a taxable commodity is or is to be made, or

(b) makes arrangements for any other person to become a party to such an agreement,

he is guilty of an offence if he does so in the belief that levy chargeable on the supply will be evaded.

(2) Subject to sub-paragraph (3), a person guilty of an offence under this paragraph shall be liable, on summary conviction, to a penalty of [F10 level 5 on the standard scale] [F10 £20,000].

(3) In the case of any offence under this paragraph, where [F11 level 5 on the standard scale] [F11 the amount of £20,000 mentioned in sub-paragraph (2)] is less than three times the sum of the amounts of levy which are shown to be amounts that were or were intended to be evaded in respect of the supply in question, the penalty shall be the amount equal to three times that sum (instead of [F11 level 5 on the standard scale] [F11 the amount of £20,000 mentioned in sub-paragraph (2)]).

(4) For the purposes of sub-paragraph (3) the amounts of levy that were or were intended to be evaded shall be taken to include—

(a) the amount of any tax credit, and

(b) the amount of any repayment of levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(5) In determining for the purposes of sub-paragraph (3) how much levy (in addition to any amount falling within sub-paragraph (4)) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayments of levy to which he was, or would have been, entitled.

Textual Amendments

F10 Sum in Sch. 6 para. 95(2) substituted for words (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 2 para. 11(5)(a) (with reg. 5(1))

F11 Words in Sch. 6 para. 95(3) substituted (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 2 para. 11(5)(b) (with reg. 5(1))

Offences under paragraphs 92 to 95: procedural matters U.K.

96 U.K. Sections 145 to 155 of the Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences and penalties under paragraphs 92 to 95 as they apply in relation to offences and penalties under the customs and excise Acts.

Arrest for offences under paragraphs 92 to 94 U.K.

F12 97 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F12 Sch. 6 para. 97 repealed (1.12.2007) by Finance Act 2007 (c. 11), s. 84(4)(5), Sch. 22 para. 11(a), Sch. 27 Pt. 5(1); S.I. 2007/3166, art. 3(a)

Civil penalties: Evasion U.K.

F13 98 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Sch. 6 paras. 98-100 omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 21(h) (with savings in relation to paras. 98, 99 by The Finance Act 2008, Schedule 41 (Appointed Day and Transitional Provisions) Order 2009 (S.I. 2009/511, art. 4(d)); S.I. 2009/571, art. 2 (with art. 6)

Liability of directors etc. for penalties under paragraph 98 U.K.

F13 99 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Sch. 6 paras. 98-100 omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 21(h) (with savings in relation to paras. 98, 99 by The Finance Act 2008, Schedule 41 (Appointed Day and Transitional Provisions) Order 2009 (S.I. 2009/511, art. 4(d)); S.I. 2009/571, art. 2 (with art. 6)

Civil penalties: Misdeclaration or neglect U.K.

F13 100 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Sch. 6 paras. 98-100 omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 21(h) (with savings in relation to paras. 98, 99 by The Finance Act 2008, Schedule 41 (Appointed Day and Transitional Provisions) Order 2009 (S.I. 2009/511, art. 4(d)); S.I. 2009/571, art. 2 (with art. 6)

Civil penalties: Incorrect notifications etc. U.K.

101 F14 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

(2) Where—

(a) a person gives, in relation to any supply (or supplies) of a taxable commodity (or taxable commodities) being made to him, to the supplier a certificate that the supply (or supplies) is (or are) to any extent—

(i) for domestic or charity use,

(ii) exempt under any of paragraphs [F15 11,] 12, [F16 12A,] 13, 14, [F17 15, 18 F18 ... and 21,]F19 ... [F20 or]

F21 (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F22 (iiia) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F23 (iv) a reduced-rate supply (or reduced-rate supplies),]

and

(b) the certificate is [F24 (or becomes)] incorrect,

the person shall be liable to a penalty.

(3) The amount of the penalty to which a person is liable under [F25 this paragraph] shall be equal to 105 per cent. of the difference between—

(a) the amount of levy (which may be nil) that would have been chargeable on the supply (or supplies) if the F26 ... certificate had been correct, and

(b) the amount of levy actually chargeable.

(4) The giving of a [F27 certificate (or not revoking or varying it)] shall not give rise to a penalty under this paragraph if [F28 the person concerned] satisfies the Commissioners or, on appeal, an appeal tribunal that [F29 the person has a reasonable excuse].

(5) Where by reason of giving a [F30 certificate (or not revoking or varying it)] —

(a) a person is convicted of an offence (whether under this Act or otherwise), or

(b) a person is assessed to a penalty under paragraph 98,

that person shall not by reason of [F31 that] be liable also to a penalty under this paragraph.

Textual Amendments

F14 Sch. 6 para. 101(1) repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(2), Sch. 27 Pt. 1(2)

F15 Word in Sch. 6 para. 101(2) inserted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(3)(a)

F16 Word in Sch. 6 para. 101(2)(a)(ii) inserted (with effect in accordance with Sch. 20 para. 10(2)(3) of the amending Act) by Finance Act 2014 (c. 26), Sch. 20 paras. 7(a), 10(1)

F17 Words in Sch. 6 para. 101(2)(a)(ii) substituted (24.7.2002 with application as mentioned in s. 127(2) of the amending Act) by 2002 c. 23, s. 127(1)(a)(2)

F18 Word in Sch. 6 para. 101(2)(a)(ii) omitted (with effect in accordance with Sch. 30 para. 19 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 30 para. 14(a)

F19 Word in Sch. 6 para. 101(2)(a) omitted (with effect in accordance with Sch. 30 para. 19 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 30 para. 14(b)

F20 Word in Sch. 6 para. 101(2)(a) inserted (with effect in accordance with Sch. 20 para. 10(2)(3) of the amending Act) by Finance Act 2014 (c. 26), Sch. 20 paras. 7(b), 10(1)

F21 Sch. 6 para. 101(2)(a)(iii) repealed (1.11.2007) by Finance Act 2006 (c. 25), s. 172(14)(b)(16), Sch. 26 Pt. 8(1); S.I. 2007/2901, art. 2(1) (with art. 2(2)-(4))

F22 Sch. 6 para. 101(2)(a)(iiia) omitted (with effect in accordance with Sch. 20 para. 10(2)(3) of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 20 paras. 7(c), 10(1)

F23 Sch. 6 para. 101(2)(a)(iv) and word preceding it inserted (24.7.2002 with application as mentioned in s. 127(2) of the amending Act) by 2002 c. 23, s. 127(1)(b)(2)

F24 Words in Sch. 6 para. 101(2) inserted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(3)(b)

F25 Words in Sch. 6 para. 101(3) substituted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(4)(a)

F26 Words in Sch. 6 para. 101(3) repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(4)(b), Sch. 27 Pt. 1(2)

F27 Words in Sch. 6 para. 101(4) substituted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(5)(a)

F28 Words in Sch. 6 para. 101(4) substituted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(5)(b)

F29 Words in Sch. 6 para. 101(4) substituted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(5)(c)

F30 Words in Sch. 6 para. 101(5) substituted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(6)(a)

F31 Word in Sch. 6 para. 101(5) substituted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 2 para. 12(6)(b)

Interpretation of Part VIII U.K.

102 (1) References in this Part of this Schedule to obtaining a tax credit are references to bringing an amount into account as a tax credit for the purposes of levy on the basis that that amount is an amount which may be so brought into account in accordance with tax credit regulations. U.K.

(2) References in this Part of this Schedule to obtaining a repayment of levy are references to obtaining either—

(a) the payment or repayment of any amount, or

(b) the acknowledgement of a right to receive any amount,

on the basis that that amount is the amount of a repayment of levy to which there is an entitlement.