A4.576 Penalty for enablers of offshore tax evasion or non-compliance
For the latest New Development, see ND.1942.
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 him liable to a relevant civil penalty, 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, as amended3, for the purpose of checking a person's liability to a penalty, see Division A6.6, and will also have the power to publish information about the enabler. The other person has carried out 'offshore tax evasion or other non-compliance'.
The relevant offences are4:
(a) cheating the public revenue involving offshore activity
(b) fraudulent evasion of income tax involving offshore activity (under TMA 1970, s 106A, see A7.432); or
(c) 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),
and the relevant civil penalties are5:
(a) errors in a taxpayer's document (under FA 2007, Sch 24, para 1 involving an offshore matter or an offshore transfer
(b) failure to notify liability (under FA 2008, Sch 41) involving offshore activity
(c) failure to make a return for 12 months (under FA 2009, Sch 55) involving offshore activity;
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