SCHEDULES
SCHEDULE 25Penalties for deliberately withholding information
PART 2Liability to a penalty
Offshore transfers
I16
1
This paragraph makes provision in relation to offshore transfers.
2
Where the liability to tax which would have been shown in the return is a liability to income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income—
a
is received in a territory outside the UK, or
b
is transferred before the relevant date to a territory outside the UK.
3
Where the liability to tax which would have been shown in the return is a liability to capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds—
a
are received in a territory outside the UK, or
b
are transferred before the relevant date to a territory outside the UK.
4
In the case of a transfer falling within sub-paragraph (2)(b) or (3)(b), references to the income or proceeds transferred are to be read as including references to any assets derived from or representing the income or proceeds.
5
In relation to an offshore transfer, the territory in question for the purposes of paragraph 4 is the highest category of territory by virtue of which the information involves an offshore transfer.
6
“Relevant date” means the date on which the person becomes liable to a penalty under this Schedule.