Finance (No. 2) Act 2017

Correcting offshore tax non-compliance

13 (1) This paragraph sets out how offshore tax non-compliance may be corrected.

(2) References to the correction of offshore tax non-compliance of any description are to the taking of any action specified in this paragraph as a means of correcting offshore tax non-compliance of that description.

(3) Offshore tax non-compliance consisting of a failure to notify chargeability may be corrected by—

(a) giving the requisite notice to HMRC (unless before doing so the person has received a notice requiring the person to make and deliver a tax return) and giving HMRC the relevant information by any means mentioned in paragraph (b),

(b) giving HMRC the relevant information—

(i) by making and delivering a tax return,

(ii) using the digital disclosure service or any other service provided by HMRC as a means of correcting tax non-compliance,

(iii) communicating it to an officer of Revenue and Customs in the course of an enquiry into the person’s tax affairs, or

(iv) using a method agreed with an officer of Revenue and Customs.

(4) In sub-paragraph (3) “relevant information” means information relating to offshore tax that—

(a) had the requisite notice been given in time and the person given a notice to make and deliver a tax return, would have been required to be included in the tax return, and

(b) would have enabled or assisted HMRC to calculate the offshore tax due.

(5) Offshore tax non-compliance consisting of a failure to make or deliver a return or other document may be corrected by giving HMRC the relevant information by—

(a) making or delivering the requisite return or document,

(b) using the digital disclosure service or any other service provided by HMRC as a means of correcting tax non-compliance,

(c) communicating it to an officer of Revenue and Customs in the course of an enquiry into the person’s tax affairs, or

(d) using a method agreed with an officer of Revenue and Customs.

(6) In subsection (5) “relevant information” means information relating to offshore tax that—

(a) should have been included in the return or other document, and

(b) would have enabled or assisted HMRC to calculate the offshore tax due.

(7) Offshore tax non-compliance consisting of making and delivering a return or other document containing an inaccuracy may be corrected by giving HMRC the relevant information by—

(a) in the case of an inaccurate tax document, amending the document or delivering a new document,

(b) using the digital disclosure service or any other service provided by HMRC as a means of correcting tax non-compliance,

(c) communicating it to an officer of Revenue and Customs in the course of an enquiry into the person’s tax affairs, or

(d) using a method agreed with an officer of Revenue and Customs.

(8) In sub-paragraph (7) “relevant information” means information relating to offshore tax that—

(a) should have been included in the return but was not (whether due to an omission or the giving of inaccurate information), and

(b) would have enabled or assisted HMRC to calculate the offshore tax due.

(9) In this paragraph “offshore tax”, in relation to any offshore tax non-compliance, means tax corresponding to the offshore PLR in respect of the non-compliance.