SCHEDULES
C1C3C2SCHEDULE 55Penalty for failure to make returns etc
Sch. 55 applied by S.R. 2009/128, reg. 35 (as substituted (6.4.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2011 (S.R. 2011/137), regs. 1(1), 8(a) (with reg. 12))
Sch. 55 applied by S.I. 2009/470, reg. 40(1)(2) (as substituted (6.4.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2011 (S.I. 2011/784), regs. 1(1), 9 (with reg. 12(2)))
Amount of penalty: occasional returns and annual returns
I32
Paragraphs 3 to 6 apply in the case of a return falling within any of items F21 to 3, 5 and 7 to 13 in the Table.
I43
P is liable to a penalty under this paragraph of £100.
I54
1
P is liable to a penalty under this paragraph if (and only if)—
a
P's failure continues after the end of the period of 3 months beginning with the penalty date,
b
HMRC decide that such a penalty should be payable, and
c
HMRC give notice to P specifying the date from which the penalty is payable.
2
The penalty under this paragraph is £10 for each day that the failure continues during the period of 90 days beginning with the date specified in the notice given under sub-paragraph (1)(c).
3
The date specified in the notice under sub-paragraph (1)(c)—
a
may be earlier than the date on which the notice is given, but
b
may not be earlier than the end of the period mentioned in sub-paragraph (1)(a).
I25
1
P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.
2
The penalty under this paragraph is the greater of—
a
5% of any liability to tax which would have been shown in the return in question, and
b
£300.
I16
1
P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.
2
Where, by failing to make the return, PF4deliberately withholds information which would enable or assist HMRC to assess P's liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).
3
If the withholding of the information is deliberate and concealed, the penalty is the greater of—
a
100% of any liability to tax which would have been shown in the return in question, and
b
£300.
F53A
For the purposes of sub-paragraph (3)(a), the relevant percentage is—
a
for the withholding of category 1 information, F3the relevant percentage,
b
for the withholding of category 2 information, 150%, and
c
for the withholding of category 3 information, 200%.
4
If the withholding of the information is deliberate but not concealed, the penalty is the greater of—
a
F8the relevant percentage of any liability to tax which would have been shown in the return in question, and
b
£300.
F14A
For the purposes of sub-paragraph (4)(a), the relevant percentage is—
a
for the withholding of category 1 information, 70%,
b
for the withholding of category 2 information, 105%, and
c
for the withholding of category 3 information, 140%.
5
In F7any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—
a
5% of any liability to tax which would have been shown in the return in question, and
b
£300.
F66
Paragraph 6A explains the 3 categories of information.
F96A
1
Information is category 1 information if—
a
it involves a domestic matter, or
b
it involves an offshore matter and—
i
the territory in question is a category 1 territory, or
ii
it is information which would enable or assist HMRC to assess P's liability to a tax other than income tax or capital gains tax.
2
Information is category 2 information if—
a
it involves an offshore matter,
b
the territory in question is a category 2 territory, and
c
it is information which would enable or assist HMRC to assess P's liability to income tax or capital gains tax.
3
Information is category 3 information if—
a
it involves an offshore matter,
b
the territory in question is a category 3 territory, and
c
it is information which would enable or assist HMRC to assess P's liability to income tax or capital gains tax.
4
Information “involves an offshore matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to—
a
income arising from a source in a territory outside the UK,
b
assets situated or held in a territory outside the UK,
c
activities carried on wholly or mainly in a territory outside the UK, or
d
anything having effect as if it were income, assets or activities of a kind described above.
5
Information “involves a domestic matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).
6
If the information which P withholds falls into more than one category—
a
P's failure to make the return is to be treated for the purposes of this Schedule as if it were separate failures, one for each category of information according to the matters which the information involves, and
b
for each separate failure, the liability to tax which would have been shown in the return in question is taken to be such share of the liability to tax which would have been shown in the return mentioned in paragraph (a) as is just and reasonable.
7
For the purposes of this Schedule—
a
paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but
b
an order under that paragraph does not apply to a failure if the filing date is before the date on which the order comes into force.
8
Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.
9
In this paragraph—
“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;
“UK” means the United Kingdom, including the territorial sea of the United Kingdom.
Sch. 55 modified (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 38