Finance Act 2022

Amount of penalty

2 (1) The further penalty payable under paragraph 1(2) is—

(a) an amount that is equal to the total value of all consideration received by all persons who, at the time of the original activities, were members of the promotion structure mentioned in paragraph 1(2)(a) in connection with—

(i) the facilitated proposal or arrangements, and

(ii) any other proposals or arrangements that are substantially the same as the facilitated proposal or arrangements, or

(b) such lower amount as the person assessing the penalty considers just and reasonable.

(2) For the purposes of this Schedule—

(a) references to consideration—

(i) include fees, remuneration and any other kind of consideration, however received,

(ii) are to such fees, remuneration or other consideration as determined to the best of the information and belief of the person assessing them, and

(iii) do not include any amount charged in respect of value added tax;

(b) where consideration is, under arrangements with any member of the promotion structure mentioned in sub-paragraph (1)(a) (“the member”), paid to a person who is not a member of that promotion structure, it is to be taken to be received by the member;

(c) consideration attributable to two or more transactions is to be apportioned on a just and reasonable basis;

(d) consideration given for what is in substance one bargain is to be treated as attributable to all elements of the bargain, even though—

(i) separate consideration is, or purports to be, given for different elements of the bargain, or

(ii) there are, or purport to be, separate transactions in respect of different elements of the bargain.