SCHEDULES
SCHEDULE 20Penalties for enablers of offshore tax evasion or non-compliance
PART 1Liability for penalty
Reduction of penalty for disclosure etc by P
I17
1
If P (who would otherwise be liable to a penalty under paragraph 1)—
a
makes a disclosure to HMRC of—
i
a matter relating to an inaccuracy in a document, a supply of false information or a failure to disclose an under-assessment,
ii
P's enabling of actions by Q that constituted (or might constitute) a relevant offence or that made (or might make) Q liable to a relevant penalty, or
iii
any other matter HMRC regard as assisting them in relation to the assessment of P's liability to a penalty under paragraph 1, or
b
assists HMRC in any investigation leading to Q being charged with a relevant offence or found liable to a relevant penalty,
HMRC must reduce the penalty to one that reflects the quality of the disclosure or assistance.
2
But the penalty may not be reduced—
a
in the case of unprompted disclosure or assistance, below whichever is the higher of—
i
10% of the potential lost revenue, or
ii
£1,000, or
b
in the case of prompted disclosure or assistance, below whichever is the higher of—
i
30% of the potential lost revenue, or
ii
£3,000.
I28
1
This paragraph applies for the purposes of paragraph 7.
2
P discloses a matter by—
a
telling HMRC about it,
b
giving HMRC reasonable help in relation to the matter (for example by quantifying an inaccuracy in a document, an inaccuracy attributable to the supply of false information or withholding of information or an under-assessment), and
c
allowing HMRC access to records for any reasonable purpose connected with resolving the matter (for example for the purpose of ensuring that an inaccuracy in a document, an inaccuracy attributable to the supply of false information or withholding of information or an under-assessment is fully corrected).
3
P assists HMRC in relation to an investigation leading to Q being charged with a relevant offence or found liable to a relevant penalty by—
a
assisting or encouraging Q to disclose all relevant facts to HMRC,
b
allowing HMRC access to records, or
c
any other conduct which HMRC considers assisted them in investigating or assessing Q's liability to such a penalty.
4
Disclosure or assistance by P—
a
is “unprompted” if made at a time when P has no reason to believe that HMRC have discovered or are about to discover Q's offshore tax evasion or non-compliance (including any inaccuracy in a document, supply of false information or withholding of information, or under-assessment), and
b
otherwise is “prompted”.
5
In relation to disclosure or assistance, “quality” includes timing, nature and extent.
I39
1
If they think it right because of special circumstances, HMRC may reduce a penalty under paragraph 1.
2
In sub-paragraph 1 “special circumstances” does not include—
a
ability to pay, or
b
the fact that a potential loss of revenue from one taxpayer is balanced by a potential overpayment by another.
3
In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
a
staying a penalty, or
b
agreeing a compromise in relation to proceedings for a penalty.