Finance Act 2012

Valid from 17/07/2012

Valid from 01/04/2013

PART 2 U.K. Establishing dishonest conduct

Conduct notice U.K.

4 (1) This paragraph applies if HMRC determine that an individual is engaging in or has engaged in dishonest conduct. U.K.

(2) An authorised officer (or an officer of Revenue and Customs with the approval of an authorised officer) may notify the individual of that determination.

(3) The notice must state the grounds on which the determination was made.

(4) For the effect of notifying the individual, see paragraphs 7(2) and 29(2).

(5) A notice under this paragraph is referred to as a “conduct notice”.

(6) In relation to a conduct notice, a reference to “the determination” is to the determination forming the subject of the notice.

Appeal against determination U.K.

5 (1) An individual to whom a conduct notice is given may appeal against the determination. U.K.

(2) Notice of appeal must be given—

(a) in writing to the officer who gave the conduct notice, and

(b) within the period of 30 days beginning with the day on which the conduct notice was given.

(3) It must state the grounds of appeal.

(4) On an appeal that is notified to the tribunal, the tribunal may confirm or set aside the determination.

(5) Subject to this paragraph, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this paragraph as they have effect in relation to an appeal against an assessment to income tax.

(6) Setting aside a determination does not prevent a further conduct notice being given in respect of the same conduct if further evidence emerges.

Offence of concealment etc in connection with conduct notice U.K.

6 (1) A person (“P”) commits an offence if, after a relevant event has occurred, P— U.K.

(a) conceals, destroys or otherwise disposes of a material document, or

(b) arranges for the concealment, destruction or disposal of a material document.

(2) A “relevant event” occurs if—

(a) a conduct notice is given to an individual, or

(b) an individual is informed by an officer of Revenue and Customs that a conduct notice will be or is likely to be given to the individual.

(3) A “material document” is any document that could be sought under paragraph 8 as a result of the giving of the conduct notice.

(4) If P acts after the event described in sub-paragraph (2)(a), no offence is committed if P acts—

(a) after the determination has been set aside,

(b) more than 4 years after the conduct notice was given, or

(c) without knowledge of that event.

(5) If P acts before that event but after the event described in sub-paragraph (2)(b), no offence is committed if P acts—

(a) more than 2 years after the individual was, or was last, so informed, or

(b) without knowledge of the event described in sub-paragraph (2)(b).

(6) P acts without knowledge of an event if P—

(a) is not the individual with respect to whom the event has occurred, and

(b) does not know, and could not reasonably be expected to know, that the event has occurred.

(7) A person guilty of an offence under this paragraph is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, and

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.