Finance Act 2013

222International agreements to improve tax complianceU.K.

This section has no associated Explanatory Notes

(1)The Treasury may make regulations for, or in connection with, giving effect to or enabling effect to be given to—

(a)the agreement reached between the Government of the United Kingdom and the Government of the United States of America to improve international tax compliance and to implement FATCA, signed on 12 September 2012;

(b)any agreement modifying or supplementing that agreement;

(c)any other agreement between the Government of the United Kingdom and the government of another territory which makes provision corresponding, or substantially similar, to that made by an agreement within paragraph (a) or (b);

(d)any arrangements for the exchange of tax information in relation to the United Kingdom and any other territory which make provision corresponding, or substantially similar, to that made by an agreement within paragraph (a) or (b).

(2)Regulations under this section may in particular—

(a)authorise HMRC to require persons specified for the purposes of this paragraph (“relevant financial entities”) to provide HMRC with information of specified descriptions;

(b)require that information to be provided at such times and in such form and manner as may be specified;

(c)impose obligations on relevant financial entities (including obligations to obtain from specified persons details of their place of residence for tax purposes [F1and client notification obligations] );

[F2(ca)impose client notification obligations on specified relevant persons;]

(d)make provision (including provision imposing penalties) about contravention of, or non-compliance with, the regulations;

(e)make provision about appeals in relation to the imposition of any penalty.

[F3(2A)For the purposes of subsection (2)(c) and (ca) a “client notification obligation” is an obligation to give specified information to—

(a)clients, or

(b)specified clients.

(2B)In subsection (2A) the reference to an obligation to give specified information includes—

(a)any obligation to give the information—

(i)in a specified form or manner;

(ii)at a specified time or specified times;

(b)in the case of a relevant financial entity or relevant person which is a body corporate, an obligation to require a person of which it has control to give the information.]

(3)Regulations under this section may—

(a)provide that a reference in the regulations to an agreement or arrangements to which subsection (1) refers, or a provision of such an agreement or arrangements, is to be construed as a reference to the agreement or arrangements, or provision, as amended from time to time;

(b)make different provision in relation to different periods of time;

(c)make different provision for different cases or circumstances;

(d)contain incidental, supplemental, transitional, transitory or saving provision (including provision amending any enactment).

(4)In this section—

  • [F4“client” includes—

    (a)

    any client or customer, and

    (b)

    any former client or customer;]

  • [F4“control” is to be construed in accordance with section 1124 of CTA 2010;]

  • “FATCA” means the provisions commonly known as the Foreign Account Tax Compliance Act in the enactment of the United States of America called the Hiring Incentives to Restore Employment Act;

  • “HMRC” means Her Majesty's Revenue and Customs;

  • [F4“relevant person” means—

    (a)

    a tax adviser (as defined by section 272(5) of FA 2014), and

    (b)

    any other person who in the course of business—

    (i)

    gives advice to another person about that person's financial or legal affairs, or

    (ii)

    provides other financial or legal services to another person;]

  • “specified” means specified in regulations under this section.

(5)The power conferred by this section is without prejudice to any other powers conferred by or under any enactment.

(6)The power of the Treasury to make regulations under this section is exercisable by statutory instrument.

(7)Any statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Textual Amendments

F1Words in s. 222(2)(c) inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 50(2)

F4Words in s. 222(4) inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 50(5)