Finance Act 2014

Obtaining information and documents

254 Meaning of “monitored proposal” and “monitored arrangements”

(1) For the purposes of this Part a relevant proposal in relation to which a person (“P”) is a promoter is a “monitored proposal” in relation to P if any of the following dates fell on or after the date on which a monitoring notice took effect—

(a) the date on which P first made a firm approach to another person in relation to the relevant proposal;

(b) the date on which P first made the relevant proposal available for implementation by any other person;

(c) the date on which P first became aware of any transaction forming part of the proposed arrangements being entered into by any person.

(2) For the purposes of this Part relevant arrangements in relation to which a person (“P”) is a promoter are “monitored arrangements” in relation to P if—

(a) P was by virtue of section 235(2)(b) or (c) a promoter in relation to a relevant proposal which was implemented by the arrangements and any of the following fell on or after the date on which the monitoring notice took effect—

(i) the date on which P first made a firm approach to another person in relation to the relevant proposal;

(ii) the date on which P first made the relevant proposal available for implementation by any other person;

(iii) the date on which P first became aware of any transaction forming part of the proposed arrangements being entered into by any person,

(b) the date on which P first took part in designing, organising or managing the arrangements fell on or after the date on which a monitoring notice took effect, or

(c) the arrangements enable, or are likely to enable, the person who has entered into transactions forming them to obtain the tax advantage by reason of which they are relevant arrangements, at any time on or after the date on which a monitoring notice took effect.

255 Power to obtain information and documents

(1) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may by notice in writing require any person (“P”) to whom this section applies—

(a) to provide information, or

(b) to produce a document,

if the information or document is reasonably required by the officer for any of the purposes in subsection (3).

(2) This section applies to—

(a) any person who is a monitored promoter, and

(b) any person who is a relevant intermediary in relation to a monitored proposal of a monitored promoter,

and in either case that monitored promoter is referred to below as “the relevant monitored promoter”.

(3) The purposes mentioned in subsection (1) are—

(a) considering the possible consequences of implementing a monitored proposal of the relevant monitored promoter for the tax position of persons implementing the proposal,

(b) checking the tax position of any person who the officer reasonably believes has implemented a monitored proposal of the relevant monitored promoter, or

(c) checking the tax position of any person who the officer reasonably believes has entered into transactions forming monitored arrangements of the relevant monitored promoter.

(4) A person is a “relevant intermediary” in relation to a monitored proposal if the person meets the conditions in section 236(a) to (c) (meaning of “intermediary”) in relation to the proposal at any time after the person has been notified of a promoter reference number of a person who is a promoter in relation to the proposal.

(5) In this section “checking” includes carrying out an investigation or enquiry of any kind.

(6) In this section “tax position”, in relation to a person, means the person’s position as regards any tax, including the person’s position as regards—

(a) past, present and future liability to pay any tax,

(b) penalties and other amounts that have been paid, or are or may be payable, by or to the person in connection with any tax,

(c) claims, elections, applications and notices that have been or may be made or given in connection with the person’s liability to pay any tax,

(d) deductions or repayments of tax, or of sums representing tax, that the person is required to make—

(i) under PAYE regulations, or

(ii) by or under any other provision of the Taxes Acts, and

(e) the withholding by the person of another person’s PAYE income (as defined in section 683 of ITEPA 2003).

(7) In this section the reference to the tax position of a person—

(a) includes the tax position of a company that has ceased to exist and an individual who has died, and

(b) is to the person’s tax position at any time or in relation to any period.

(8) A notice under subsection (1) which is given for the purpose of checking the tax position of a person mentioned in subsection (3)(b) or (c) may not be given more than 4 years after the person’s death.

(9) A notice under subsection (1) may specify or describe the information or documents to be provided or produced.

(10) Information or a document required as a result of a notice under subsection (1) must be provided or produced within—

(a) the period of 10 days beginning with the day on which the notice was given, or

(b) such longer period as the officer who gives the notice may direct.

256 Tribunal approval for certain uses of power under section 255

(1) An officer of Revenue and Customs may not, without the approval of the tribunal, give a notice under section 255 requiring a person (“A”) to provide information or produce a document which relates (in whole or in part) to a person who is neither A nor an undertaking in relation to which A is a parent undertaking.

(2) An officer of Revenue and Customs may apply to the tribunal for the approval required by subsection (1); and an application for approval may be made without notice.

(3) The tribunal may approve the giving of the notice only if—

(a) the application for approval is made by, or with the agreement of, an authorised officer,

(b) the tribunal is satisfied that, in the circumstances, the officer giving the notice is justified in doing so,

(c) the person to whom the notice is to be given has been informed that the information or documents referred to in the notice are required and given a reasonable opportunity to make representations to an officer of Revenue and Customs, and

(d) the tribunal has been given a summary of any representations made by that person.

(4) Where a notice is given under section 255 with the approval of the tribunal, it must state that it is given with that approval.

(5) Paragraphs (c) and (d) of subsection (3) do not apply to the extent that the tribunal is satisfied that taking the action specified in those paragraphs might prejudice the assessment or collection of tax.

(6) In subsection (1) “parent undertaking” and “undertaking” have the same meaning as in the Companies Acts (see section 1161 and 1162 of, and Schedule 7 to, the Companies Act 2006).

(7) A decision of the tribunal under this section is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).

257 Ongoing duty to provide information following HMRC notice

(1) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to a person (“P”) in relation to whom a monitoring notice has effect.

(2) A person to whom a notice is given under subsection (1) must provide prescribed information and produce prescribed documents relating to—

(a) all the monitored proposals and all the monitored arrangements in relation to which the person is a promoter at the time of the notice, and

(b) all the monitored proposals and all the monitored arrangements in relation to which the person becomes a promoter after that time.

(3) The duty under subsection (2)(b) does not apply in relation to any proposals or arrangements in relation to which the person first becomes a promoter after the monitoring notice ceases to have effect.

(4) A notice under subsection (1) must specify the time within which information must be provided or a document produced and different times may be specified for different cases.

258 Duty of person dealing with non-resident monitored promoter

(1) This section applies where a monitored promoter who is resident outside the United Kingdom has failed to comply with a duty under section 255 or 257 to provide information about a monitored proposal or monitored arrangements.

(2) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to a relevant person which—

(a) specifies or describes the information which the monitored promoter has failed to provide, and

(b) requires the person to provide the information.

(3) A “relevant person” means—

(a) any person who is an intermediary in relation to the monitored proposal concerned, and

(b) any person (“A”) to whom the monitored promoter has made a firm approach in relation to the monitored proposal concerned with a view to making the proposal available for implementation by a person other than A.

(4) If an authorised officer is not aware of any person to whom a notice could be given under subsection (2) the authorised officer, or an officer of Revenue and Customs with the approval of the authorised officer, may give a notice to any person who has implemented the proposal which—

(a) specifies or describes the information which the monitored promoter has failed to provide, and

(b) requires the person to provide the information.

(5) If the duty mentioned in subsection (1) relates to monitored arrangements an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to any person who has entered into any transaction forming part of the monitored arrangements concerned which—

(a) specifies or describes the information which the monitored promoter has failed to provide, and

(b) requires the person to provide the information.

(6) A notice under this section may be given only if the officer giving the notice reasonably believes that the person to whom the notice is given is able to provide the information requested.

(7) Information required as a result of a notice under this section must be provided within—

(a) the period of 10 days beginning with the day on which the notice was given, or

(b) such longer period as the officer who gives the notice may direct.

259 Monitored promoters: duty to provide information about clients

(1) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give notice to a person in relation to whom a monitoring notice has effect (“the monitored promoter”).

(2) A person to whom a notice is given under subsection (1) must, for each relevant period, give the officer who gave the notice the information set out in subsection (9) in respect of each person who was its client with reference to that relevant period (see subsections (5) to (8)).

(3) Each of the following is a “relevant period”—

(a) the calendar quarter in which the notice under subsection (1) was given but not including any time before the monitoring notice takes effect,

(b) the period (if any) beginning with the date the monitoring notice takes effect and ending immediately before the beginning of the period described in paragraph (a), and

(c) each calendar quarter after the period described in paragraph (a) but not including any time after the monitoring notice ceases to have effect.

(4) Information required as a result of a notice under subsection (1) must be given—

(a) within the period of 30 days beginning with the end of the relevant period concerned, or

(b) in the case of a relevant period within subsection (3)(b), within the period of 30 days beginning with the day on which the notice under subsection (1) was given if that period would expire at a later time than the period given by paragraph (a).

(5) A person (“C”) is a client of the monitored promoter with reference to a relevant period if—

(a) the promoter did any of the things mentioned in subsection (6) in relation to C at any time during that period, or

(b) the person falls within subsection (7).

(6) Those things are that the monitored promoter—

(a) made a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;

(b) made a relevant proposal available for implementation by C;

(c) took part in the organisation or management of relevant arrangements entered into by C.

(7) A person falls within this subsection if the person has entered into transactions forming part of relevant arrangements and those arrangements—

(a) enable the person to obtain a tax advantage either in that relevant period or a later relevant period, and

(b) are either relevant arrangements in relation to which the monitored promoter is or was a promoter, or implement a relevant proposal in relation to which the monitored promoter was a promoter.

(8) But a person is not a client of the monitored promoter with reference to a relevant period if—

(a) the person has previously been a client of the monitored promoter with reference to a different relevant period,

(b) the promoter complied with the duty in subsection (2) in respect of the person for that relevant period, and

(c) the information provided as a result of complying with that duty remains accurate.

(9) The information mentioned in subsection (2) is—

(a) the person’s name and address, and

(b) such other information about the person as may be prescribed.

(10) Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice, subsection (5)(b) does not impose a duty on the monitored promoter concerned to provide information about a person who has entered into transactions forming part of relevant arrangements (as described in subsection (7)) if the monitored promoter reasonably believes that information about that person has, in relation to those arrangements, already been provided under the original monitoring notice.

260 Intermediaries: duty to provide information about clients

(1) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give notice to a person (“the intermediary”) who is an intermediary in relation to a relevant proposal which is a monitored proposal of a person in relation to whom a monitoring notice has effect (“the monitored promoter”).

(2) A person to whom a notice is given under subsection (1) must, for each relevant period, give the officer who gave the notice the information set out in subsection (7) in respect of each person who was its client with reference to that relevant period (see subsections (5) to (6)).

(3) Each of the following is a “relevant period”—

(a) the calendar quarter in which the notice under subsection (1) was given but not including any time before the intermediary was first notified under section 250, 251 or 252 of the promoter reference number of the monitored promoter,

(b) the period (if any) beginning with the date of the notification under section 250, 251 or 252 and ending immediately before the beginning of the period described in paragraph (a), and

(c) each calendar quarter after the period described in paragraph (a) but not including any time after the monitoring notice mentioned in subsection (1) ceases to have effect.

(4) Information required as a result of a notice under subsection (1) must be given—

(a) within the period of 30 days beginning with the end of the relevant period concerned, or

(b) in the case of a relevant period within subsection (3)(b), within the period of 30 days beginning with the day on which the notice under subsection (1) was given if that period would expire at a later time than the period given by paragraph (a).

(5) A person (“C”) is a client of the intermediary with reference to a relevant period if during that period—

(a) the intermediary communicated information to C about a monitored proposal in the course of a business, and

(b) the communication was made with a view to C, or any other person, entering into transactions forming part of the proposed arrangements.

(6) But a person is not a client of the intermediary with reference to a relevant period if—

(a) the person has previously been a client of the intermediary with reference to a different relevant period,

(b) the intermediary complied with the duty in subsection (2) in respect of the person for that relevant period, and

(c) the information provided as a result of complying with that duty remains accurate.

(7) The information mentioned in subsection (2) is—

(a) the person’s name and address, and

(b) such other information about the person as may be prescribed.

261 Enquiry following provision of client information

(1) This section applies where—

(a) a person (“the notifying person”) has provided information under section 259 or 260 about a person who was a client of the notifying person with reference to a relevant period (within the meaning of the section concerned) in connection with a particular relevant proposal or particular relevant arrangements, and

(b) an authorised officer suspects that a person in respect of whom information has not been provided under section 259 or 260—

(i) has at any time been, or is likely to be, a party to transactions implementing the proposal, or

(ii) is a party to a transaction forming (in whole or in part) particular relevant arrangements.

(2) The authorised officer may by notice in writing require the notifying person to provide prescribed information in relation to any person whom the notifying person might reasonably be expected to know—

(a) has been, or is likely to be, a party to transactions implementing the proposal, or

(b) is a party to a transaction forming (in whole or in part) the relevant arrangements.

(3) But a notice under subsection (2) does not impose a requirement on the notifying person to provide information which the notifying person has already provided to an authorised officer under section 259 or 260.

(4) The notifying person must comply with a requirement under subsection (2) within—

(a) 10 days of the notice, or

(b) such longer period as the authorised officer may direct.

262 Information required for monitoring compliance with conduct notice

(1) This section applies where a conduct notice has effect in relation to a person.

(2) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may (as often as is necessary for the purpose mentioned below) by notice in writing require the person—

(a) to provide information, or

(b) to produce a document,

if the information or document is reasonably required for the purpose of monitoring whether and to what extent the person is complying with the conditions in the conduct notice.

263 Duty to notify HMRC of address

If, on the last day of a calendar quarter, a monitoring notice has effect in relation to a person (“the monitored promoter”) the monitored promoter must within 30 days of the end of the calendar quarter inform an authorised officer of its current address.

264 Failure to provide information: application to tribunal

(1) This section applies where—

(a) a person (“P”) has provided information or produced a document in purported compliance with section 255, 257, 258, 259, 260, 261 or 262, but

(b) an authorised officer suspects that P has not provided all the information or produced all the documents required under the section concerned.

(2) The authorised officer, or an officer of Revenue and Customs with the approval of the authorised officer, may apply to the tribunal for an order requiring P to—

(a) provide specified information about persons who are its clients for the purposes of the section to which the application relates,

(b) provide specified information, or information of a specified description, about a monitored proposal or monitored arrangements,

(c) produce specified documents relating to a monitored proposal or monitored arrangements.

(3) The tribunal may make an order under subsection (2) in respect of information or documents only if satisfied that the officer has reasonable grounds for suspecting that the information or documents—

(a) are required under section 255, 257, 258, 259, 260, 261 or 262 (as the case may be), or

(b) will support or explain information required under the section concerned.

(4) A requirement by virtue of an order under subsection (2) is to be treated as part of P’s duty under section 255, 257, 258, 259, 260, 261 or 262 (as the case may be).

(5) Information or a document required as a result of subsection (2) must be provided, or the document produced, within the period of 10 days beginning with the day on which the order under subsection (2) was made.

(6) An authorised officer may, by direction, extend the 10 day period mentioned in subsection (5).

265 Duty to provide information to monitored promoter

(1) This section applies where a person has been notified of a promoter reference number—

(a) under section 250 by reason of being a person falling within subsection (2)(b) of that section, or

(b) under section 251 or 252.

(2) The person notified (“C”) must within 10 days notify the person whose promoter reference number it is of—

(a) C’s national insurance number (if C has one), and

(b) C’s unique tax reference number (if C has one).

(3) If C has neither a national insurance number nor a unique tax reference number, C must within 10 days inform the person whose promoter reference number it is of that fact.

(4) A unique tax reference number is an identification number allocated to a person by HMRC.

(5) Subsection (2) or (3) does not impose a duty on C to provide information which C has already provided to the person whose promoter reference number it is.