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Procedure.Tax
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X2: Offshore activities offences
Failing, without reasonable excuse, to give notice of chargeability in relation to offshore income, assets or activities
"(1) A person who is required by section 7 to give notice of being chargeable to income tax or capital gains tax (or both) for a year of assessment and who has not given that notice by the end of the notification period commits an offence if—
a) the tax in question is chargeable (wholly or in part) on or by reference to offshore income, assets or activities, and
(b) the total amount of income tax and capital gains tax that is chargeable for the year of assessment on or by reference to offshore income, assets or activities exceeds the threshold amount.
(2) It is a defence for a person accused of an offence under this section to prove that the person had a reasonable excuse for failing to give the notice required by section 7.
(3) In this section “the notification period” has the same meaning as in section 7 (see subsection (1C) of that section)." (TMA 1970, s.106B)
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Period extended by HMRC
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"(1) Where a period of time is extended under subsection (2) of section 118 by HMRC, the tribunal or an officer (but not where a period is otherwise extended under that subsection), any reference in section 106B, 106C or 106D to the end of the period is to be read as a reference to the end of the period as so extended." (TMA 1970, s.106F(1))
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Failing, without reasonable excuse, to make a return that would show tax chargeable by reference to offshore income, assets or activities
"(1) A person who is required by section 7 to give notice of being chargeable to income tax or capital gains tax (or both) for a year of assessment and who has not given that notice by the end of the notification period commits an offence if—
a) the tax in question is chargeable (wholly or in part) on or by reference to offshore income, assets or activities, and
(b) the total amount of income tax and capital gains tax that is chargeable for the year of assessment on or by reference to offshore income, assets or activities exceeds the threshold amount.
(2) It is a defence for a person accused of an offence under this section to prove that the person had a reasonable excuse for failing to give the notice required by section 7.
(3) In this section “the notification period” has the same meaning as in section 7 (see subsection (1C) of that section)." (TMA 1970, s.106C)
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Period extended by HMRC
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"(1) Where a period of time is extended under subsection (2) of section 118 by HMRC, the tribunal or an officer (but not where a period is otherwise extended under that subsection), any reference in section 106B, 106C or 106D to the end of the period is to be read as a reference to the end of the period as so extended." (TMA 1970, s.106F(1))
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Delivering, without taking reasonable care, a return containing an inaccuracy in relation to tax on offshore income, assets or activities
"(1) A person who is required by a notice under section 8 to make and deliver a return for a year of assessment commits an offence if, at the end of the amendment period—
(a) the return contains an inaccuracy the correction of which would result in an increase in the amount of income tax or capital gains tax (or both) that is chargeable for the year of assessment on or by reference to offshore income, assets or activities, and
(b) the amount of that increase exceeds the threshold amount.
(2) It is a defence for a person accused of an offence under this section to prove that the person took reasonable care to ensure that the return was accurate.
(3) In this section “the amendment period” means the period for amending the return under section 9ZA." (TMA 1970, s.106D)
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Period extended by HMRC
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"(1) Where a period of time is extended under subsection (2) of section 118 by HMRC, the tribunal or an officer (but not where a period is otherwise extended under that subsection), any reference in section 106B, 106C or 106D to the end of the period is to be read as a reference to the end of the period as so extended." (TMA 1970, s.106F(1))
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Exclusion for trustees and executors
"(1) A person is not guilty of an offence under section 106B, 106C or 106D if the capacity in which the person is required to give the notice or make and deliver the return is—
(a) as a relevant trustee of a settlement, or
(b) as the executor or administrator of a deceased person." (TMA 1970, s.106E(1))
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Meaning of offshore income, assets or activities
"(4) In sections 106B to 106D and this section “offshore income, assets or activities” means—
(a) income arising from a source in a territory outside the United Kingdom,
(b) assets situated or held in a territory outside the United Kingdom, or
(c) activities carried on wholly or mainly in a territory outside the United Kingdom.
(5) In subsection (4), “assets” has the meaning given in section 21(1) of the 1992 Act, but also includes sterling." (TMA 1970, s.106F(4) - (5))
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Penalties for offences
"(1) A person guilty of an offence under section 106B, 106C or 106D is liable on summary conviction—
(a) in England and Wales, to a fine or to imprisonment for a term not exceeding 51 weeks or to both, and
(b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding 6 months or to both.
(2) In relation to an offence committed before the coming into force of section 281(5) of the Criminal Justice Act 2003, the reference in subsection (1)(a) to 51 weeks is to be read as a reference to 6 months." (TMA 1970, s.106G(1) - (2))
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