The Sections 106B, 106C and 106D of the Taxes Management Act 1970 (Specified Threshold Amount) Regulations 2017
Citation and commencement
1.
These Regulations may be cited as the Sections 106B, 106C and 106D of the Taxes Management Act 1970 (Specified Threshold Amount) Regulations 2017 and come into force on 3rd November 2017.
Interpretation
2.
(1)
In these Regulations—
(a)
(b)
“CRS arrangements” means the arrangements relating to the CRS described in paragraph (2).
(c)
(i)
CRS arrangements; or
(ii)
(d)
“relevant time” means the time when the event giving rise to income tax or capital gains tax chargeable on or by reference to offshore income, assets or activities occurs;
(e)
(2)
Threshold amount for the purposes of sections 106B to 106D of TMA 1970
3.
The threshold amount for a year of assessment for the purposes of sections 106B to 106D of TMA 1970 (offences relating to certain failures to comply with sections 7 or 8 of TMA 1970 by a taxpayer chargeable to income tax or capital gains tax on or by reference to offshore income, assets or activities) is £25,000.
4.
Whether the threshold amount has been exceeded in relation to a person for the purposes of sections 106B to 106D of TMA 1970 must be determined by reference to—
(a)
regulations 5 and 6 for the purposes of section 106B of TMA 1970 (offence of failure to give notice of being chargeable to tax);
(b)
regulation 7 for the purposes of section 106C of TMA 1970 (offence of failing to deliver a tax return);
(c)
regulations 8 and 9 for the purposes of section 106D of TMA 1970 (offence of making an inaccurate return).
Calculation of the total amount of income tax and capital gains tax chargeable on or by reference to offshore income, assets or activities for the purposes of section 106B of TMA 1970
5.
6.
Paragraphs 7 and 11 must be construed as if—
(a)
the purpose of those paragraphs is to calculate the section 106B amount (with references to “potential lost revenue” construed accordingly); and
(b)
those paragraphs have effect only in relation to income tax or capital gains tax chargeable on or by reference to offshore income, assets or activities (other than excluded offshore income tax or capital gains tax).
Calculation of the total amount of income tax and capital gains tax chargeable on or by reference to offshore income, assets or activities for the purposes of section 106C of TMA 1970
7.
The total amount of income and capital gains tax chargeable for a year of assessment for the purposes of section 106C of TMA 1970 is the amount of any liability to income tax or capital gains tax chargeable on or by reference to offshore income, assets or activities (other than excluded offshore income tax or capital gains tax) which would have been shown in the return in question.
Calculation of the increase in the amount of income tax and capital gains tax chargeable on or by reference to offshore income, assets or activities for the purposes of section 106D of TMA 1970
8.
9.
Paragraphs 5, 6 and 7 must be construed as if—
(a)
the purpose of those paragraphs is to calculate the section 106D amount (with references to “potential lost revenue” construed accordingly);
(b)
those paragraphs have effect only in relation to income tax or capital gains tax chargeable on or by reference to offshore income, assets or activities (other than excluded offshore income tax or capital gains tax); and
(c)
SCHEDULE
Arrangements relating to the CRS: specified territories
Andorra, Anguilla, Antigua and Barbuda, Argentina, Aruba, Australia, Austria, The Bahamas, Bahrain, Barbados, Belgium, Belize, Bermuda, Brazil, British Virgin Islands, Brunei Darussalam, Bulgaria, Canada, Cayman Islands, Chile, China, Colombia, Cook Islands, Costa Rica, Croatia, Curaçao, Cyprus, Czech Republic, Denmark, Dominica, Estonia, Faroe Islands, Finland, France, Germany, Ghana, Gibraltar, Greece, Greenland, Grenada, Guernsey, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Korea (South), Kuwait, Latvia, Lebanon, Liechtenstein, Lithuania, Luxembourg, Macau, Malaysia, Malta, Marshall Islands, Mauritius, Mexico, Monaco, Montserrat, Nauru, Netherlands (including Bonaire, Sint Eustatius and Saba), New Zealand (not including Tokelau), Niue, Norway, Panama, Poland, Portugal, Qatar, Romania, Russia, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Saudi Arabia, Seychelles, Singapore, Sint Maarten, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Trinidad and Tobago, Turkey, Turks and Caicos Islands, United Arab Emirates, Uruguay, Vanuatu.
A taxpayer will be guilty of an offence under sections 106B, 106C or 106D of the Taxes Management Act 1970 (c. 9) (“TMA 1970”) in respect of certain failures to comply with sections 7 or 8 of the TMA 1970 for the year of assessment commencing on 6th April 2017 or a subsequent year where, as a result of the failure, the taxpayer does not tell the Commissioners for Her Majesty’s Revenue and Customs (“HMRC”) that the taxpayer is liable to pay an amount of income tax or capital gains tax chargeable on or by reference to offshore income, assets or liabilities (“relevant tax”). There is no offence under those provisions if the total of the relevant tax unreported to HMRC for the year of assessment in question does not exceed the “threshold amount”. Regulation 3 specifies the threshold amount as £25,000. Regulations 4 to 9 set out the means of determining whether the threshold amount has been exceeded.
A Tax Information and Impact Note covering this instrument was published on 9th December 2015 and is available on the gov.uk website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.