SCHEDULES

SCHEDULE 20Penalties in connection with offshore matters and offshore transfers

Penalties for failure to notify

11

(1)

Paragraph 6A (categorisation of failures) is amended as follows.

(2)

For sub-paragraph (1) substitute—

“A1

A failure is in category 0 if—

(a)

it involves a domestic matter,

(b)

it involves an offshore matter or an offshore transfer, the territory in question is a category 0 territory and the tax at stake is income tax or capital gains tax, or

(c)

it involves an offshore matter and the tax at stake is a tax other than income tax or capital gains tax.

(1)

A failure is in category 1 if—

(a)

it involves an offshore matter or an offshore transfer,

(b)

the territory in question is a category 1 territory, and

(c)

the tax at stake is income tax or capital gains tax.”

(3)

In sub-paragraph (2)(a), after “matter” insert “ or an offshore transfer ”.

(4)

In sub-paragraph (3)(a), after “matter” insert “ or an offshore transfer ”.

(5)

After sub-paragraph (4) insert—

“(4A)

A failure “involves an offshore transfer” if—

(a)

it does not involve an offshore matter,

(b)

it is deliberate (whether or not concealed) and results in a potential loss of revenue,

(c)

the tax at stake is income tax or capital gains tax, and

(d)

the applicable condition in paragraph 6AA is satisfied.”

(6)

In sub-paragraph (5), for the words following “revenue” substitute “ and does not involve either an offshore matter or an offshore transfer ”.

(7)

In sub-paragraph (6)(a), after “matters” insert “ or transfers ”.

(8)

Omit sub-paragraph (8).

(9)

In sub-paragraph (9), after “paragraph” insert “ and paragraph 6AA ”.