SCHEDULE 55Penalty for failure to make returns etc
Amount of penalty: occasional returns and annual returnsAmount of penalty: occasional returns and returns for periods of 6 months or more
F16AA
(1)
This paragraph makes provision in relation to offshore transfers.
(2)
Where the liability to tax which would have been shown in the return is a liability to income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income—
(a)
is received in a territory outside the UK, or
(b)
is transferred before the relevant date to a territory outside the UK.
(3)
Where the liability to tax which would have been shown in the return is a liability to capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds—
(a)
are received in a territory outside the UK, or
(b)
are transferred before the relevant date to a territory outside the UK.
(4)
Where the liability to tax which would have been shown in the return is a liability to inheritance tax, the applicable condition is satisfied if—
(a)
the disposition that gives rise to the transfer of value by reason of which the tax becomes chargeable involves a transfer of assets, and
(b)
after that disposition but before the relevant date the assets, or any part of the assets, are transferred to a territory outside the UK.
(5)
In the case of a transfer falling within sub-paragraph (2)(b), (3)(b) or (4)(b), references to the income, proceeds or assets transferred are to be read as including references to any assets derived from or representing the income, proceeds or assets.
(6)
In relation to an offshore transfer, the territory in question for the purposes of paragraph 6A is the highest category of territory by virtue of which the information involves an offshore transfer.
(7)
“Relevant date” means the date on which P becomes liable to a penalty under paragraph 6.