P gives HMRC a document of a kind listed in the Table below, and

Conditions 1 and 2 are satisfied.

an understatement of F5a liability to tax,

a false or inflated statement of a loss F6..., or

a false or inflated claim to repayment of tax.

another person (P) gives HMRC a document of a kind listed in the Table in paragraph 1,

the document contains a relevant inaccuracy, and

the inaccuracy was attributable to T deliberately supplying false information to P (whether directly or indirectly), or to T deliberately withholding information from P, with the intention of the document containing the inaccuracy.

an understatement of a liability to tax,

a false or inflated statement of a loss, or

a false or inflated claim to repayment of tax.

an assessment issued to P by HMRC understates P's liability to F8a relevant tax, and

P has failed to take reasonable steps to notify HMRC, within the period of 30 days beginning with the date of the assessment, that it is an under-assessment.

whether P knew, or should have known, about the under-assessment, and

what steps would have been reasonable to take to notify HMRC.

“assessment” includes determination, and

accordingly, references to an under-assessment include an under-determination.

“careless” if the inaccuracy is due to failure by P to take reasonable care,

“deliberate but not concealed” if the inaccuracy is deliberate F11on P's part but P does not make arrangements to conceal it, and

“deliberate and concealed” if the inaccuracy is deliberate F11on P's part and P makes arrangements to conceal it (for example, by submitting false evidence in support of an inaccurate figure).

discovered the inaccuracy at some later time, and

did not take reasonable steps to inform HMRC.

falls within paragraph 1(2), and

arises because the document is submitted on the basis that particular avoidance arrangements (within the meaning of paragraph 3B) had an effect which in fact they did not have.

the inaccuracy was deliberate on P's part, or

P satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid inaccuracy.

the advice was given to P by an interested person;

the advice was given to P as a result of arrangements made between an interested person and the person who gave the advice;

the person who gave the advice did not have appropriate expertise for giving the advice;

the advice took no account of P's individual circumstances;

the advice was addressed to, or given to, a person other than P;

has taken reasonable steps to find out whether the advice falls within that paragraph, and

reasonably believes that it does not.

a person, other than P, who participated in the avoidance arrangements or any transaction forming part of them, or

a person who for any consideration (whether or not in money) facilitated P's entering into the avoidance arrangements.

the person giving the advice had appropriate expertise for giving it,

the advice took account of P's individual circumstances, and

sub-paragraph (7) is to be read as if the reference in paragraph (b) to P were to D.

they are arrangements which accord with established practice, and

HMRC had, at the time the arrangements were entered into, indicated its acceptance of that practice.

for the purposes of this Schedule the arrangements are to be taken to fall within (and always to have fallen within) sub-paragraph (2), and

in relation to the arrangements, sub-paragraph (3) (and the reference to it in sub-paragraph (1)) are to be treated as omitted.

Condition A is that the arrangements are DOTAS arrangements within the meaning given by section 219(5) and (6) of FA 2014;

Condition B is that the arrangements are disclosable VAT arrangements or disclosable indirect tax arrangements for the purposes of Schedule 18 to FA 2016 (see paragraphs 8A to 9A of that Schedule);

Condition E is that a tax advantage asserted by reference to the arrangements has been counteracted (by an assessment, an amendment of a return or claim, or otherwise) on the basis that an avoidance-related rule applies in relation to P's affairs.

paragraph 12 of Schedule 43 to FA 2013 (general anti-abuse rule: notice of final decision);

paragraph 8 or 9 of Schedule 43A to that Act (pooled or bound arrangements: notice of final decision);

paragraph 8 of Schedule 43B to that Act (generic referrals: notice of final decision).

“relevant partner” has the meaning given by paragraph 2(5) of Schedule 31 to FA 2014;

a partnership follower notice is given “in respect of” the partnership return mentioned in paragraph 2(2)(a) or (b) of that Schedule.

wholly as mentioned in one or other of sub-paragraphs (i) and (ii) of sub-paragraph (5)(d), or

partly as mentioned in one of those sub-paragraphs and partly as mentioned in the other;

for careless action, 30% of the potential lost revenue,

for deliberate but not concealed action, 70% of the potential lost revenue, and

for deliberate and concealed action, 100% of the potential lost revenue.

for careless action, 45% of the potential lost revenue,

for deliberate but not concealed action, 105% of the potential lost revenue, and

for deliberate and concealed action, 150% of the potential lost revenue.

for careless action, 60% of the potential lost revenue,

for deliberate but not concealed action, 140% of the potential lost revenue, and

for deliberate and concealed action, 200% of the potential lost revenue.

it involves a domestic matter, or

it involves an offshore matter F99or an offshore transfer ,

the territory in question is a category 2 territory, and

the tax at stake is income tax F100, capital gains tax or inheritance tax .

it involves an offshore matter F101or an offshore transfer ,

the territory in question is a category 3 territory, and

the tax at stake is income tax F102 , capital gains tax or inheritance tax .

income arising from a source in a territory outside the UK,

assets situated or held in a territory outside the UK,

activities carried on wholly or mainly in a territory outside the UK, or

anything having effect as if it were income, assets or activities of a kind described above.

it does not involve an offshore matter,

it is deliberate (whether or not concealed) and results in a potential loss of revenue,

the tax at stake is income tax, capital gains tax or inheritance tax, and

the applicable condition in paragraph 4AA is satisfied.

it is to be treated for the purposes of this Schedule as if it were separate inaccuracies, one in each relevant category according to the matters F104or transfers that it involves, and

the potential lost revenue is to be calculated separately in respect of each separate inaccuracy.

is received in a territory outside the UK, or

is transferred before the filing date to a territory outside the UK.

are received in a territory outside the UK, or

are transferred before the filing date to a territory outside the UK.

the disposition that gives rise to the transfer of value by reason of which the tax becomes chargeable involves a transfer of assets, and

after that disposition but before the filing date the assets, or any part of the assets, are transferred to a territory outside the UK.

an amount payable to HMRC having been erroneously paid by way of repayment of tax, and

an amount which would have been repayable by HMRC had the inaccuracy or assessment not been corrected.

group relief, and

any relief under F74section 458 of CTA 2010 (relief in respect of repayment etc of loan) which is deferred under F75subsection (5) of that section;

careless inaccuracies shall be taken to be corrected before deliberate inaccuracies, and

deliberate but not concealed inaccuracies shall be taken to be corrected before deliberate and concealed inaccuracies.

“understatement” means an inaccuracy that satisfies Condition 1 of paragraph 1, and

“overstatement” means an inaccuracy that does not satisfy that condition.

understatements in respect of which P is not liable to a penalty,

careless understatements,

deliberate but not concealed understatements, and

deliberate and concealed understatements.

the potential lost revenue calculated in accordance with paragraph 5 in respect of any part of the loss that has been used to reduce the amount due or payable in respect of tax, plus

10% of any part that has not.

to a case where no loss would have been recorded but for the inaccuracy, and

to a case where a loss of a different amount would have been recorded (but in that case sub-paragraphs (1) and (2) apply only to the difference between the amount recorded and the true amount).

the potential lost revenue shall be calculated in accordance with this paragraph, and

in applying paragraph 5 in accordance with sub-paragraphs (1) and (2) above, group relief may be taken into account (despite paragraph 5(4)(a)).

5% of the delayed tax for each year of the delay, or

a percentage of the delayed tax, for each separate period of delay of less than a year, equating to 5% per year.

under paragraph 1 where a person discloses an inaccuracy that involves a domestic matter,

under paragraph 1A where a person discloses a supply of false information or withholding of information, and

under paragraph 2 where a person discloses a failure to disclose an under-assessment.

an inaccuracy that involves a domestic matter,

a careless inaccuracy that involves an offshore matter,

a supply of false information or withholding of information, or

a failure to disclose an under-assessment.

telling HMRC about it,

giving HMRC reasonable help in quantifying the inaccuracy F17, the inaccuracy attributable to the F62supply of false information or withholding of information, or the under-assessment, and

allowing HMRC access to records for the purpose of ensuring that the inaccuracy F18, the inaccuracy attributable to the F63supply of false information or withholding of information, or the under-assessment is fully corrected.

a deliberate inaccuracy (whether concealed or not) that involves an offshore matter, or

an inaccuracy that involves an offshore transfer.

telling HMRC about it,

giving HMRC reasonable help in quantifying the inaccuracy,

allowing HMRC access to records for the purpose of ensuring that the inaccuracy is fully corrected, and

providing HMRC with additional information.

is “unprompted” if made at a time when the person making it has no reason to believe that HMRC have discovered or are about to discover the inaccuracy F19, the supply of false information or withholding of information, or the under-assessment, and

otherwise, is “prompted”.

in the case of a prompted disclosure, in column 2 of the Table, and

in the case of an unprompted disclosure, in column 3 of the Table.

in the case of a prompted disclosure, in column 2 of the Table, and

in the case of an unprompted disclosure, in column 3 of the Table.

ability to pay, or

the fact that a potential loss of revenue from one taxpayer is balanced by a potential over-payment by another.

staying a penalty, and

agreeing a compromise in relation to proceedings for a penalty.

if the penalty imposed under paragraph 1 is for an inaccuracy in category 1, 100%,

if the penalty imposed under paragraph 1 is for an inaccuracy in category 2, 150%, and

if the penalty imposed under paragraph 1 is for an inaccuracy in category 3, 200%.

assess the penalty,

F24notify the person, and

state in the notice a tax period in respect of which the penalty is assessed F87(subject to sub-paragraph (1ZB)).

a person is at any time liable for two or more penalties relating to PAYE returns, or for two or more penalties relating to CIS returns, F118 or for two or more penalties relating to apprenticeship levy returns, and

the penalties (“the relevant penalties”) are assessed in respect of more than one tax period (“the relevant tax periods”).

shall be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by this Act),

may be enforced as if it were an assessment to tax, and

may be combined with an assessment to tax.

the end of the appeal period for the decision correcting the inaccuracy, or

if there is no assessment F28to the tax concerned within paragraph (a), the date on which the inaccuracy is corrected.

the end of the appeal period for the assessment of tax which corrected the understatement, or

if there is no assessment within paragraph (a), the date on which the understatement is corrected.

an appeal could be brought, or

an appeal that has been brought has not been determined or withdrawn.

what part of the penalty is to be suspended,

a period of suspension not exceeding two years, and

conditions of suspension to be complied with by P.

action to be taken, and

a period within which it must be taken.

if P satisfies HMRC that the conditions of suspension have been complied with, the suspended penalty or part is cancelled, and

otherwise, the suspended penalty or part becomes payable.

so as to require P to pay a penalty before an appeal against the assessment of the penalty is determined, or

in respect of any other matter expressly provided for by this Act.

affirm HMRC's decision, or

substitute for HMRC's decision another decision that HMRC had power to make.

to the same extent as HMRC (which may mean applying the same percentage reduction as HMRC to a different starting point), or

to a different extent, but only if the F53... tribunal thinks that HMRC's decision in respect of the application of paragraph 11 was flawed.

the F54... tribunal may order HMRC to suspend the penalty only if it thinks that HMRC's decision not to suspend was flawed, and

may affirm the conditions of suspension, or

may vary the conditions of suspension, but only if the F58... tribunal thinks that HMRC's decision in respect of the conditions was flawed.

a director (including a shadow director within the meaning of section 251 of the Companies Act 2006 (c. 46)), F70...

a manager, and

a secretary.

a director,

a manager,

a secretary, and

any other person managing or purporting to manage any of the company's affairs.

paragraph 11 applies to the specified portion as to a penalty,

the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,

paragraph 13(2), (3) and (5) apply as if the notice were an assessment of a penalty,

a further notice may be given in respect of a portion of any additional amount assessed in a supplementary assessment in respect of the penalty under paragraph 13(6),

paragraphs 15(1) and (2), 16 and 17(1) to (3) and (6) apply as if HMRC had decided that a penalty of the amount of the specified portion is payable by the officer, and

paragraph 21 applies as if the officer were liable to a penalty.

the inaccuracy involves a claim by the person to exercise or rely on a VAT right (in relation to a supply) that has been denied or refused by HMRC as mentioned in subsection (4) of section 69C of VATA 1994, and

the person has been assessed to a penalty under that section (and the assessment has not been successfully appealed against or withdrawn).

a category 1 territory, nor

a category 3 territory.

the existence of any arrangements between the UK and that territory for the exchange of information for tax enforcement purposes,

the quality of any such arrangements (in particular, whether they provide for information to be exchanged automatically or on request), F84...

the benefit that the UK would be likely to obtain from receiving information from that territory, were such arrangements to exist with it.

the existence of any other arrangements between the UK and that territory for co-operation in the area of taxation, and

the quality of any such other arrangements (in particular, the extent to which the co-operation provided for in them assists or is likely to assist in the protection of revenue raised from taxation in the UK).

the first order to be made under sub-paragraph (1), or

the first order to be made under sub-paragraph (3),

a source of income is located,

an asset is situated or held, or

activities are wholly or mainly carried on.

income is received or transferred,

the proceeds of a disposal are received or transferred, or

assets are transferred.