SCHEDULES
F1SCHEDULE 7AInterest restriction returns
PART 2Contents of interest restriction return
Reductions in amount of penalty for disclosure or special circumstances
33
1
If a company liable to a penalty under paragraph 30 or 32 in respect of an inaccuracy discloses the inaccuracy—
a
the penalty must be reduced to one that reflects the quality of the disclosure (including its timing, nature and extent), but
b
the penalty may not be reduced below the applicable minimum.
2
In the case of a penalty under paragraph 30, the applicable minimum is—
a
in the case of a careless inaccuracy, 0% of the notional tax if the disclosure is unprompted and 15% otherwise,
b
in the case of a deliberate inaccuracy that is not concealed, 30% of the notional tax if the disclosure is unprompted and 45% otherwise, and
c
in the case of a deliberate inaccuracy that is concealed, 40% of the notional tax if the disclosure is unprompted and 60% otherwise.
3
In the case of a penalty under paragraph 32, the applicable minimum is 40% of the notional tax if the disclosure is unprompted and 60% otherwise.
4
For the purposes of this paragraph—
a
a person makes a disclosure of an inaccuracy by telling an officer of Revenue and Customs about it, giving an officer of Revenue and Customs reasonable help in quantifying it and allowing an officer of Revenue and Customs access to records to ensure that it is fully corrected, and
b
a person makes an “unprompted” disclosure at any time if the person has no reason at that time to believe that an officer of Revenue and Customs have discovered, or are about to discover, the inaccuracy.
5
If they think it right because of special circumstances, an officer of Revenue and Customs may—
a
reduce a penalty under paragraph 30 or 32, or
b
stay the penalty or agree a compromise in relation to proceedings for the penalty.
6
The reference to special circumstances does not include an ability to pay but, subject to that, is taken to include, or exclude, such other circumstances as are prescribed by regulations made by the Commissioners.
7
The power to prescribe circumstances includes power to prescribe circumstances by reference to the notional tax and the extent to which the notional tax exceeds, or is likely to exceed, any actual loss of tax to the Crown.
Sch. 7A inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 2 (with Sch. 5 para. 28)