22(1)In section 237 (duty to give conduct notices)—U.K.
(a)in subsection (5), in paragraph (b)—
(i)omit sub-paragraph (i) (and the “and” after it);
(ii)in sub-paragraph (ii), for “(or conditions)” substitute “ (or, if more than one condition is met, the meeting of all of those conditions, taken together) ”;
(b)after that subsection insert—
“(5A)In determining under subsection (5)(b) whether or not P's meeting of the condition (or conditions) should be regarded as significant, the authorised officer must determine whether the meeting of that condition (or those conditions taken together) by the person mentioned in subsection (1A)(a) should be regarded as significant in view of the purposes of this Part.
(5B)If the officer determines that the meeting of the condition (or those conditions) by that person should be regarded as significant, the officer must determine that P's meeting of that condition (or those conditions) should be regarded as significant.”;
(c)in subsection (7A)—
(i)in the words before paragraph (a) omit “both”;
(ii)omit paragraph (a) (and the “and” after it).
(2)In section 237A (duty to give conduct notices: defeat of promoted arrangements)—
(a)in subsection (3) omit paragraph (a) (and the “and” after it);
(b)after that subsection insert—
“(3A)In determining under subsection (3) whether or not P's meeting of the condition should be regarded as significant, the authorised officer must determine whether the meeting of that condition by the person mentioned in subsection (2)(a) should be regarded as significant in view of the purposes of this Part.
(3B)If the officer determines that the meeting of the condition by that person should be regarded as significant, the officer must determine that P's meeting of that condition should be regarded as significant.”;
(c)in subsection (9) omit paragraph (a) (and the “and” after it).
23U.K.In section 238 (content of conduct notices), in subsection (3), at the end insert—
“(h)to ensure that the recipient provides such information or documents to HMRC as are required for the purpose of monitoring whether and to what extent the recipient is complying with any of the conditions in the notice.”
24(1)Section 240 (amendment or withdrawal of conduct notice) is amended as follows.U.K.
(2)In the heading, for “or withdrawal” substitute “ , withdrawal or reissue ”.
(3)In subsection (3), omit paragraph (b) (and the “and” before it).
(4)After subsection (3) insert—
“(4)An authorised officer may (instead of amending the notice) withdraw the notice and give a new conduct notice.”
25U.K.In section 241 (duration of conduct notice)—
(a)in subsection (2)—
(i)in paragraph (a), for “the period of two years” substitute “ the relevant period ”;
(ii)omit the “or” at the end of paragraph (a);
(iii)omit paragraph (b);
(b)after subsection (2) insert—
“(2A)But where a new conduct notice was given under section 240(4) that has a commencement date that is later than 12 months before the end of the relevant period in relation to the original notice, that new notice ceases to have effect at the end of the relevant period in relation to the original notice.”;
(c)after subsection (4) insert—
“(4A)For the purposes of subsection (2)(a), the relevant period in relation to a conduct notice is calculated in accordance with this table—
| If the authorised officer is aware that the person to whom the notice is given meets | the relevant period is such period as may be notified in accordance with subsection (4B) or (4C) up to |
|---|---|
| 1 ordinary condition | 2 years |
| 2 ordinary conditions | 4 years |
| 3 or more ordinary conditions | 5 years |
| 1 significant condition | 3 years |
| 1 significant condition and 1 or more other significant or ordinary conditions | 5 years |
Subsection (4E) makes provision for the relevant period to be extended in certain circumstances.
(4B)When an authorised officer gives a person a conduct notice the officer must notify the person of the relevant period calculated by reference to the conditions which the officer is aware the person has met at that time.
(4C)If an authorised officer becomes aware that a person in relation to whom a conduct notice has effect has met one or more conditions which were not taken into account when the relevant period was calculated at the time the notice was given, the officer may give the person a notice—
(a)stating that the relevant period has been recalculated to take account of the additional conditions, and
(b)notifying the person of —
(i)the new relevant period as recalculated in accordance with the table in subsection (4A), and
(ii)the new date at the end of which the conduct notice will cease to have effect.
(4D)For the purposes of the table in subsection (4A)—
(a)a condition is significant if it is—
(i)a threshold condition listed in section 237(9), or
(ii)a condition in section 237A(11), (12) or (13) in respect of which an authorised officer makes a determination (whether in accordance with section 237A(1) or (2) or for the purposes of this paragraph) that meeting the condition should be regarded as significant in view of the purposes of this Part, and
(b)a condition is ordinary if it is a threshold condition not listed in section 237(9).
(4E)In calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on all or part of which the effect of the conduct notice in question has been suspended by an authorised officer.
(4F)Where an authorised officer suspends the effect of a conduct notice, the officer must, as soon as practicable, notify the person to whom the notice was given of the suspension.
(4G)Where an authorised officer determines that the effect of a conduct notice should be resumed, the officer must, as soon as practicable, notify the person to whom the notice was given—
(a)that its effect has been resumed,
(b)of the number of days that are not to be taken into account in calculating the relevant period in accordance with subsection (4E), and
(c)of the new date at the end of which the relevant period is expected to end.
(4H)Where a conduct notice has been given to a person and the person is subsequently given a notice under paragraph 1 of Schedule 36 of FA 2008 as it has effect as a result of section 272A (power to obtain information and documents), in calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on which the person has not complied with that notice.
(4I)For the purposes of subsection (4H), a person has not complied with a notice given under that paragraph on each day—
(a)beginning with the day after the last day on which the person could have complied with the notice, and
(b)ending with the day before the day (or, if more than one, the last day) on which the person provides the information or produces the documents required by the notice.
(4J)As soon as reasonably practicable after the day mentioned in subsection (4I)(b), an authorised officer must give the person to whom the conduct notice was given notice of—
(a)the number of days that are not to be taken into account in calculating the relevant period, and
(b)of the new date at the end of which the relevant period is expected to end.”
26U.K.In section 241A (defeat notices), in subsection (4), for “come to the attention of HMRC” substitute “ first come to the attention of an authorised officer ”.
27(1)In section 242 (monitoring notices: duty to apply to tribunal), in subsection (1)—U.K.
(a)in paragraph (b)—
(i)the words from “has failed” to the end become sub-paragraph (i);
(ii)at the end of that sub-paragraph insert “, or
(ii)has provided false or misleading information or documents in relation to the notice,”;
(b)in the words after paragraph (b), after “the authorised officer must” insert “ , within the period of 12 months beginning with the day on which the authorised officer makes the determination, ”.
(2)After subsection (1) insert—
“(1A)Where subsection (1B) applies, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may apply to the tribunal for approval to give a person (“P”) a monitoring notice.
(1B)This subsection applies where—
(a)within the period of 6 years after a conduct notice ceases to have effect in relation to P, the officer mentioned in subsection (1A) determines that P—
(i)failed to comply with one or more conditions in the notice, or
(ii)provided false or misleading information or documents in relation to the notice, and
(b)the officer could not reasonably have been expected to make the determination when the conduct notice had effect.
(1C)An application under subsection (1A) may not be made after the period of 12 months beginning with the day on which the officer makes the determination mentioned in subsection (1B)(a).
(1D)Where subsection (1E) applies, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may apply to the tribunal for approval to give a person (“D”) a monitoring notice.
(1E)This subsection applies where—
(a)at any time before the end of the period of 6 years after a conduct notice ceases to have effect in relation to a person (“P”), an authorised officer determines (whether before or after the notice ceases to have effect) that P—
(i)failed to comply with one or more conditions in the notice, or
(ii)provided false or misleading information or documents in relation to the notice,
(b)before the end of that period, the authorised officer becomes aware that P has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to D (whether before or after the notice ceases to have effect), and
(c)the officer could not reasonably have been expected—
(i)to apply to the tribunal for approval to give P a monitoring notice, or
(ii)to give P a monitoring notice following such an application,
before the relevant transfer took place.
(1F)For the purposes of an application under subsection (1D), any act or omission of P by reference to which the determination mentioned in subsection (1E)(a) was made is to be treated as an act or omission of D.
(1G)An application under subsection (1D) may not be made after the period of 12 months beginning with the day on which the officer makes the determination mentioned in subsection (1E)(a).”
(3)The amendments made by this paragraph have effect in relation to—
(a)conduct notices that cease to have effect on or after the day on which this Act is passed, and
(b)relevant transfers made on or after that day.
28U.K.Schedule 34 (threshold conditions) is amended as follows.
29(1)Paragraph 5 (non-compliance with Part 7 of FA 2004) is amended in accordance with sub-paragraphs (2) to (7).U.K.
(2)In the heading, for “Part 7 of FA 2004” substitute “ avoidance disclosure requirements ”.
(3)Before sub-paragraph (1) insert—
“(A1)A person meets this condition if the person fails to comply with any of the following provisions of—
(a)Part 7 of FA 2004 (disclosure of tax avoidance schemes);
(b)Schedule 17 to F(No. 2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).”
(4)In sub-paragraph (1)—
(a)for the words before paragraph (a) substitute “ The provisions of Part 7 of FA 2004 are— ”;
(b)after paragraph (c) insert—
“(ca)section 310C (duty of promoter to provide updated information);
(cb)section 312(2) (duty of promoter to notify client of reference number);”;
(c)after paragraph (d) insert—
“(e)section 316A (duty to provide additional information).”
(5)After sub-paragraph (1) insert—
“(1A)The provisions of Schedule 17 to F(No.2)A 2017 are—
(a)paragraph 11(1) (duty of promoter in relation to notifiable proposals);
(b)paragraph 21(3) (duty of promoter to provide updated information);
(c)paragraph 23(2) (duty of promoter to notify client of reference number);
(d)paragraph 27(3) (duty of promoter to provide details of clients);
(e)paragraph 33 (duty to provide additional information).”
(6)In sub-paragraph (2)—
(a)for “sub-paragraph (1)” substitute “ sub-paragraphs (1) and (1A) ”;
(b)for “that sub-paragraph” substitute “ any of those sub-paragraphs ”.
(7)In sub-paragraph (4), after “TMA 1970” insert “ or paragraph 48 of Schedule 17 to F(No.2)A 2017 ”.
30U.K.In paragraph 7—
(a)before the existing text, insert—
“(1)A person meets this condition if one or more of sub-paragraphs (2) to (4) apply in respect of the person.”;
(b)the existing text becomes sub-paragraph (2);
(c)in that sub-paragraph (2), for “A person meets this condition if” substitute “ This sub-paragraph applies in respect of a person if ”;
(d)after that sub-paragraph, insert—
“(3)This sub-paragraph applies in respect of a person (“P”) if—
(a)another person has been given, in respect of arrangements in relation to which P is a promoter (“the promoted arrangements”)—
(i)a pooled arrangements opinion notice, under paragraph 6(2) of Schedule 43A to FA 2013, or
(ii)a bound arrangements opinion notice under paragraph 6(4) of that Schedule,
(b)the notice in question sets out a report prepared by HMRC of an opinion of the GAAR Advisory Panel in relation to the promoted arrangements that is contained in one or more opinion notices given under paragraph 11(3)(b) of Schedule 43 to FA 2013 or paragraph 6(4)(b) of Schedule 43B to FA 2013, and
(c)the opinion notice, or the opinion notices taken together, either—
(i)state the joint opinion of all the members of the sub-panel arranged under Schedule 43 or 43B, as the case may be, or
(ii)state the opinion of two or more members of the sub-panel.
(4)This sub-paragraph applies in respect of a person if—
(a)arrangements in relation to which the person is a promoter (“the promoted arrangements”) are equivalent within the meaning of paragraph 24(3) of Schedule 16 to F(No. 2)A 2017 to arrangements that have been referred to the GAAR Advisory Panel under paragraph 26 of that Schedule,
(b)one or more opinion notices are given under paragraph 34(3)(b) of Schedule 16 to F(No.2)A 2017 that apply to the promoted arrangements for the purposes of Part 7 of that Schedule, and
(c)the notice, or the notices taken together, either—
(i)state the joint opinion of all the members of the sub-panel arranged under that Schedule, or
(ii)state the opinion of two or more members of that sub-panel.”
31U.K.In paragraph 10 (exercise of information powers)—
(a)in sub-paragraph (1), for the words from “an information notice” to the end substitute “a requirement imposed by a notice or order given under any of the following provisions—
(a)section 308A, 310A, 313ZB, 313A and 313B of FA 2004;
(b)paragraphs 1, 2, 5 and 5A of Schedule 36 to FA 2008;
(c)paragraphs 16, 19, 28, 29 and 30 of Schedule 17 to F(No.2)A 2017.”
(b)in sub-paragraph (2), after “notice” insert “ or order ”.