Commentary

A4.576 Penalty for enablers of offshore tax evasion or non-compliance

Administration and compliance

A4.576 Penalty for enablers of offshore tax evasion or non-compliance

A4.576 Penalty for enablers of offshore tax evasion or non-compliance

For the latest New Development, see ND.1942.

Penalty for enablers of offshore tax evasion or non-compliance—overview

A civil penalty may be charged 1 on those who deliberately enable offshore tax evasion or other non-compliance by another person. This applies to income tax, capital gains tax and inheritance tax where another person commits a 'relevant offence' or engages in conduct which makes them liable to a 'relevant civil penalty' (see below), and the enabler has encouraged, assisted or otherwise facilitated that conduct2. The rules apply to acts or omissions occurring on or after 1 January 2017.

HMRC may use its existing information powers under FA 2008, Sch 36, as amended, for the purpose of checking a person's liability to a penalty3. See below. HMRC also has the power to publish information about the enabler4. See below.

Meaning of relevant offences

The 'relevant offences' are5:

  1.  

    •     cheating the public revenue 'involving offshore activity'

  2.  

    •     fraudulent evasion of income tax 'involving offshore activity' (under TMA 1970, s 106A, see A7.432), or

  3.  

    •     failure to notify income tax or capital gains tax on or by reference to offshore income, assets or liabilities (under TMA 1970, ss 106B–106D, see A7.434)

'Involving offshore activity' is defined as involving an offshore matter, an offshore transfer, or a relevant offshore asset move6. For further details on these definitions see A4.575A and A4.575B.

Meaning of relevant civil penalties

The 'relevant civil penalties' are7:

  1.  

    •     errors in a taxpayer's document (under FA 2007, Sch 24, Pt 1,

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial