SCHEDULES
SCHEDULE 22Asset-based penalty for offshore inaccuracies and failures
PART 1Liability for penalty
Meaning of standard offshore tax penalty
I12
1
A standard offshore tax penalty is a penalty that falls within sub-paragraph (2), (3) F3(4) or (4A) .
2
A penalty falls within this sub-paragraph if—
a
it is imposed under paragraph 1 of Schedule 24 to FA 2007 (inaccuracy in taxpayer's document),
b
the inaccuracy for which the penalty is imposed involves an offshore matter or an offshore transfer,
c
it is imposed for deliberate action (whether concealed or not), and
d
the tax at stake is (or includes) capital gains tax, inheritance tax or asset-based income tax.
3
A penalty falls within this sub-paragraph if—
a
it is imposed under paragraph 1 of Schedule 41 to FA 2008 (penalty for failure to notify),
b
the failure for which the penalty is imposed involves an offshore matter or an offshore transfer,
c
it is imposed for a deliberate failure (whether concealed or not), and
d
the tax at stake is (or includes) capital gains tax or asset-based income tax.
4
A penalty falls within this sub-paragraph if—
a
it is imposed under paragraph 6 of Schedule 55 to FA 2009 (penalty for failure to make return more than 12 months after filing date),
b
it is imposed for the withholding of information involving an offshore matter or an offshore transfer,
c
it is imposed for a deliberate withholding of information (whether concealed or not), and
d
the tax at stake is (or includes) capital gains tax, inheritance tax or asset-based income tax.
F14A
A penalty falls within this paragraph if—
a
it is imposed on a person under paragraph 1 of Schedule 18 to FA 2017 (requirement to correct relevant offshore tax non-compliance),
b
the person was aware at any time during the RTC period that at the end of the 2016-17 tax year P had relevant offshore tax non-compliance to correct, and
c
the tax at stake is (or includes) capital gains tax, inheritance tax or asset-based income tax.
5
In a case where the inaccuracy, failure or withholding of information for which a penalty is imposed involves both an offshore matter or an offshore transfer and a domestic matter, the standard offshore tax penalty is only that part of the penalty that involves the offshore matter or offshore transfer.
F25A
Sub-paragraph (5) does not apply to a penalty imposed under paragraph 1 of Schedule 18 to FA 2017.
6
In a case where the tax at stake in relation to a penalty includes a tax other than capital gains tax, inheritance tax or asset-based income tax, the standard offshore tax penalty is only that part of the penalty which relates to capital gains tax, inheritance tax or asset-based income tax.
7
“Asset-based income tax” means income tax that is charged under any of the provisions mentioned in column 1 of the table in paragraph 13(2).