Finance Act 2022

Application of information and inspection powers U.K.

6 (1) Schedule 36 to FA 2008 (information and inspection powers) applies for the purpose of checking a relevant person’s position as regards liability for a penalty under paragraph 1(2) as it applies for checking a person’s tax position, subject to the modifications set out in this paragraph.

(2) In this paragraph, “relevant person” means a person an officer of Revenue and Customs has reason to suspect is or may be liable to a penalty under paragraph 1(2) (including if the person would or may be so liable if found liable to pay one or more penalties within paragraph 1(3) or (4)).

(3) In its application for the purpose mentioned in sub-paragraph (1), Schedule 36 to FA 2008 has effect as if—

(a) any provisions which can have no application for that purpose were omitted;

(b) references to “the (or a) taxpayer” were to “the (or a) relevant person”;

(c) references to a person’s “tax position” were to the relevant person’s position as regards liability for a penalty under paragraph 1(2);

(d) references to “business documents” included any documents (or copies of documents) in connection with any relevant proposal or relevant arrangements;

(e) references to prejudice to the assessment or collection of tax included a reference to prejudice to the investigation of a relevant person’s position as regards liability for a penalty under paragraph 1(2);

(f) references to a pending appeal relating to tax were to a pending appeal by a relevant person under this Schedule;

(g) in paragraph 10A (power to inspect business premises of involved third parties) the reference in sub-paragraph (1) to the position of any person or class of persons as regards a relevant tax were a reference to the position of a relevant person as regards liability to a penalty under paragraph 1(2);

(h) paragraphs 21 to 21B (certain taxpayer notices) were omitted;

(i) paragraph 25 (tax advisers) were omitted;

(j) paragraphs 50 and 51 (tax-related penalty) were omitted.