SCHEDULES
C2C3C1SCHEDULE 41Penalties: failure to notify and certain VAT and excise wrongdoing
Sch. 41 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 11(6) (with Sch. 16 para. 11(7))
Sch. 41 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 13
Reductions for disclosure
I112
F11
Paragraph 13 provides for reductions in penalties—
a
under paragraph 1 where P discloses a relevant failure that involves a domestic matter, and
b
under paragraphs 2 to 4 where P discloses a relevant act or failure.
1A
Paragraph 13A provides for reductions in penalties under paragraph 1 where P discloses a relevant failure that involves an offshore matter or an offshore transfer.
1B
Sub-paragraph (2) applies where P discloses—
a
a relevant failure that involves a domestic matter,
b
a non-deliberate relevant failure that involves an offshore matter, or
c
a relevant act or failure giving rise to a penalty under any of paragraphs 2 to 4.
2
P discloses F4the relevant act or failure by—
a
telling HMRC about it,
b
giving HMRC reasonable help in quantifying the tax unpaid by reason of it, and
c
allowing HMRC access to records for the purpose of checking how much tax is so unpaid.
F32A
Sub-paragraph (2B) applies where P discloses—
a
a deliberate relevant failure (whether concealed or not) that involves an offshore matter, or
b
a relevant failure that involves an offshore transfer.
2B
P discloses the failure by—
a
telling HMRC about it,
b
giving HMRC reasonable help in quantifying the tax unpaid by reason of it,
c
allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and
d
providing HMRC with additional information.
2C
The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (2B)(d).
2D
Regulations under sub-paragraph (2C) are to be made by statutory instrument.
2E
An instrument containing regulations under sub-paragraph (2C) is subject to annulment in pursuance of a resolution of the House of Commons.
3
Disclosure of a relevant act or failure—
a
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 relevant act or failure, and
b
otherwise, is “prompted”.
4
In relation to disclosure “quality” includes timing, nature and extent.
F25
Paragraph 6A(4) to (5) applies to determine whether a failure involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.
6
In this paragraph “relevant failure” means a failure to comply with a relevant obligation.
Sch. 41 modified (with effect in accordance with s. 42(2), Sch. 12 para. 29(1) of the amending Act) by Finance Act 2018 (c. 3), Sch. 12 paras. 33, 34