SCHEDULES
SCHEDULE 22Asset-based penalty for offshore inaccuracies and failures
PART 3Identification and valuation of assets
Introduction
I110
1
This Part makes provision about the identification and valuation of the asset for the purposes of calculating the amount of the asset-based penalty.
2
An asset-based penalty may relate to more than one asset.
3
The identification and valuation of the asset is to be determined—
a
under paragraph 11 where the principal tax at stake is capital gains tax,
b
under paragraph 12 where the principal tax at stake is inheritance tax, and
c
under paragraph 13 where the principal tax at stake is asset-based income tax.
See also paragraph 14 (jointly held assets).
4
The principal tax at stake—
a
in a case where the standard offshore tax penalty (or penalties) relates to only one type of tax, is the tax to which that standard offshore tax penalty (or penalties) relates;
b
in a case where the standard offshore tax penalty (or penalties) relate to more than one type of tax, is the tax which gives rise to the highest offshore PLR value.
5
The offshore PLR value, in relation to a type of tax, is the potential lost revenue or liability to tax by reference to which the part of the penalty relating to that type of tax was assessed.
6
The rules in paragraph 5(2) to (7) apply for the purposes of calculating the offshore PLR value, in relation to a type of tax, as they apply for the purposes of calculating the offshore PLR.