SCHEDULES
SCHEDULE 25Penalties for deliberately withholding information
PART 2Liability to a penalty
Reductions for disclosure
I17
1
Paragraph 8 provides for reductions in the penalty under this Schedule where the person discloses information which has been withheld by a failure to make a return (“relevant information”).
2
A person discloses relevant information that involves a domestic matter by—
a
telling HMRC about it,
b
giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld, and
c
allowing HMRC access to records for the purpose of checking how much tax is so unpaid.
3
A person discloses relevant information that involves an offshore matter or an offshore transfer by—
a
telling HMRC about it,
b
giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld,
c
allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and
d
providing HMRC with additional information.
4
The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (3)(d).
5
Disclosure of relevant information—
a
is “unprompted” if made at a time when the person has no reason to believe that HMRC have discovered or are about to discover the relevant information, and
b
otherwise, is “prompted”.
6
In relation to disclosure “quality” includes timing, nature and extent.
7
Paragraph 4(4) to (6) applies to determine whether relevant information involves an offshore matter, an offshore transfer or a domestic matter.