SCHEDULES
SCHEDULE 13Penalties for facilitating avoidance schemes involving non-resident promoters
1Liability to penalty
1
Sub-paragraph (2) applies in relation to a person (“A”) if the person is liable to pay—
a
a penalty within sub-paragraph (3), or
b
one or more penalties within sub-paragraph (4), provided that the total amount that is payable under that penalty or those penalties is at least £100,000.
In this Schedule penalties by virtue of which sub-paragraph (2) applies in relation to a person are called “the original penalties”.
2
A is liable to a further penalty if—
a
the original penalties were incurred in respect of activities (the “original activities”) which A carried out as a member of the same promotion structure as a non-resident promoter (“P”), and
b
the original activities related to a relevant proposal or relevant arrangements in relation to which P was a promoter (the “facilitated proposal or arrangements”).
3
Penalties are within this paragraph if they are incurred under—
a
the entry relating to section 236B(1) of FA 2014 (effect of stop notices) in the table at paragraph 2(1) of Schedule 35 to that Act (promoters of tax avoidance schemes: penalties);
b
Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance).
4
Penalties are within this paragraph if they are incurred under any of the following—
a
section 98C of TMA 1970 (disclosure of tax avoidance schemes);
b
Part 5 of FA 2014 (promoters of tax avoidance schemes) (other than the provision mentioned in sub-paragraph (3)(a)), and Schedule 36 to FA 2008 (information and inspection powers) as it has effect in relation to that Part (see section of 272A of FA 2014);
c
Schedule 36 to FA 2008 as it has effect in relation to Schedule 16 to F(No.2)A 2017 (see Part 9 of Schedule 16 to F(No.2)A 2017);
d
Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).
5
For the purposes of this paragraph, a person is liable to pay a penalty within sub-paragraph (3) or (4) from the time at which—
a
notice of the penalty is given, in a case where the penalty is to be imposed by HMRC, or
b
the penalty is determined, in a case where the penalty is to be determined by the First-tier Tribunal,
regardless of any outstanding appeal relating to the original penalty.
6
In this paragraph, a “non-resident promoter” is a person who carries on a business as a promoter and is resident outside the United Kingdom.