458Disclosure of information by tax authorities

1

The Commissioners for Her Majesty's Revenue and Customs may disclose information to F12the F5Financial Reporting Council Limited for the purpose of facilitating—

a

the taking of steps by F12the F5Financial Reporting Council Limited to discover whether there are grounds for an application to the court under section 456 (application in respect of F2defective accounts, strategic report or energy and carbon report etc), or

b

a decision by F12the F5Financial Reporting Council Limited whether to make such an application.

2

This section applies despite any statutory or other restriction on the disclosure of information. Provided that, in the case of personal data within the meaning of the Data Protection Act 1998 (c.29), information is not to be disclosed in contravention of that Act.

3

Information disclosed to F12the F5Financial Reporting Council Limited under this section—

a

may not be used except in or in connection with—

i

taking steps to discover whether there are grounds for an application to the court under section 456, or

ii

deciding whether or not to make such an application,

or in, or in connection with, proceedings on such an application; and

b

must not be further disclosed except—

i

to the person to whom the information relates, or

ii

in, or in connection with, proceedings on any such application to the court.

4

A person who contravenes subsection (3) commits an offence unless—

a

he did not know, and had no reason to suspect, that the information had been disclosed under this section, or

b

he took all reasonable steps and exercised all due diligence to avoid the commission of the offence.

5

A person guilty of an offence under subsection (4) is liable—

a

on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both);

b

on summary conviction—

i

in England and Wales, to imprisonment for a term not exceeding twelve months or to a fine not exceeding the statutory maximum (or both);

ii

in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months, or to a fine not exceeding the statutory maximum (or both).

6

Where an offence under this section is committed by a body corporate, every officer of the body who is in default also commits the offence. For this purpose—

a

any person who purports to act as director, manager or secretary of the body is treated as an officer of the body, and

b

if the body is a company, any shadow director is treated as an officer of the company.

459Power of F12the F5Financial Reporting Council Limited to require documents, information and explanations

1

This section applies where it appears to F12the F5Financial Reporting Council Limited that there is, or may be, a question whether an LLP's annual accounts F9, strategic reportF4or energy and carbon report comply with the requirements of this Act.

2

F12The F5Financial Reporting Council Limited may require any of the persons mentioned in subsection (3) to produce any document, or to provide him with any information or explanations, that he may reasonably require for the purpose of—

a

discovering whether there are grounds for an application to the court under section 456, or

b

deciding whether to make such an application.

3

Those persons are—

a

the LLP;

b

any member, employee, or auditor of the LLP;

c

any persons who fell within paragraph (b) at a time to which the document or information required by F12the F5Financial Reporting Council Limited relates.

4

If a person fails to comply with such a requirement, F12the F5Financial Reporting Council Limited may apply to the court.

5

If it appears to the court that the person has failed to comply with a requirement under subsection (2), it may order the person to take such steps as it directs for securing that the documents are produced or the information or explanations are provided.

6

A statement made by a person in response to a requirement under subsection (2) or an order under subsection (5) may not be used in evidence against him in any criminal proceedings.

7

Nothing in this section compels any person to disclose documents or information in respect of which a claim to legal professional privilege (in Scotland, to confidentiality of communications) could be maintained in legal proceedings.

8

In this section “document” includes information recorded in any form.

460Restrictions on disclosure of information obtained under compulsory powers

1

This section applies to information (in whatever form) obtained in pursuance of a requirement or order under section 459 (power of F5Financial Reporting Council Limited to require documents etc) that relates to the private affairs of an individual or to any particular business.

2

No such information may, during the lifetime of that individual or so long as that business continues to be carried on, be disclosed without the consent of that individual or the person for the time being carrying on that business.

3

This does not apply—

a

to disclosure permitted by section 461 (permitted disclosure of information obtained under compulsory powers), or

b

to the disclosure of information that is or has been available to the public from another source.

4

A person who discloses information in contravention of this section commits an offence, unless—

a

he did not know, and had no reason to suspect, that the information had been disclosed under section 459, or

b

he took all reasonable steps and exercised all due diligence to avoid the commission of the offence.

5

A person guilty of an offence under this section is liable—

a

on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both);

b

on summary conviction—

i

in England and Wales, to imprisonment for a term not exceeding twelve months or to a fine not exceeding the statutory maximum (or both);

ii

in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months, or to a fine not exceeding the statutory maximum (or both).

6

Where an offence under this section is committed by a body corporate, every officer of the body who is in default also commits the offence. For this purpose—

a

any person who purports to act as director, manager or secretary of the body is treated as an officer of the body, and

b

if the body is a company, any shadow director is treated as an officer of the company.

461Permitted disclosure of information obtained under compulsory powers

1

The prohibition in section 460 of the disclosure of information obtained in pursuance of a requirement or order under section 459 (power of F5Financial Reporting Council Limited to require documents etc) that relates to the private affairs of an individual or to any particular business has effect subject to the following exceptions.

2

It does not apply to the disclosure of information for the purpose of facilitating the carrying out by F12the F5Financial Reporting Council Limited of its functions under section 456.

3

It does not apply to disclosure to—

a

the Secretary of State,

b

the Department of Enterprise, Trade and Investment for Northern Ireland,

c

the Treasury,

d

the Bank of England,

F1e

Financial Conduct Authority,

ea

Prudential Regulation Authority, or

f

the Commissioners for Her Majesty's Revenue and Customs.

4

It does not apply to disclosure—

a

for the purpose of assisting the body known as the Professional Oversight Board established under the articles of association of the Financial Reporting Council Limited (registered number 02486368) to exercise its functions under Part 42 of this Act;

b

with a view to the institution of, or otherwise for the purposes of, disciplinary proceedings relating to the performance by an accountant or auditor of his professional duties;

c

for the purpose of enabling or assisting the Secretary of State or the Treasury to exercise any of their functions under any of the following—

i

the Companies Acts,

ii

Part 5 of the Criminal Justice Act 1993 (c.36) (insider dealing),

iii

the Insolvency Act 1986 (c.45) or the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)),

iv

the Company Directors Disqualification Act 1986 (c.46) or the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)),

v

the Financial Services and Markets Act 2000 (c.8);

d

for the purpose of enabling or assisting the Department of Enterprise, Trade and Investment for Northern Ireland to exercise any powers conferred on it by the enactments relating to companies, directors' disqualification or insolvency;

F10e

for the purpose of enabling or assisting the Bank of England to exercise its functions when acting otherwise than in its capacity as the Prudential Regulation Authority;

f

for the purpose of enabling or assisting the Commissioners for Her Majesty's Revenue and Customs to exercise their functions;

g

for the purpose of enabling or assisting the F6Financial Conduct Authority or the Prudential Regulation Authority to exercise its functions under any of the following—

i

the legislation relating to friendly societiesF7...,

F11ia

the legislation relating to a society, other than a society registered as a credit union, which is—

aa

a registered society within the meaning given by section 1(1) of the Co-operative and Community Benefit Societies Act 2014, or

ab

a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969,

ii

the Building Societies Act 1986 (c.53),

iii

Part 7 of the Companies Act 1989 (c.40),

iv

the Financial Services and Markets Act 2000; or

h

in pursuance of any F8retained EU obligation.

5

It does not apply to disclosure to a body exercising functions of a public nature under legislation in any country or territory outside the United Kingdom that appear to F12the F5Financial Reporting Council Limited to be similar to its functions under section 456 for the purpose of enabling or assisting that body to exercise those functions.

6

In determining whether to disclose information to a body in accordance with subsection (5), F12the F5Financial Reporting Council Limited must have regard to the following considerations—

a

whether the use which the body is likely to make of the information is sufficiently important to justify making the disclosure;

b

whether the body has adequate arrangements to prevent the information from being used or further disclosed other than—

i

for the purposes of carrying out the functions mentioned in that subsection, or

ii

for other purposes substantially similar to those for which information disclosed to F12the F5Financial Reporting Council Limited could be used or further disclosed.

7

Nothing in this section authorises the making of a disclosure in contravention of the Data Protection Act 1998 (c.29).