Finance Act 1989

InformationU.K.

142 Power to call for documents and information.U.K.

(1)Section 20 of the M1 Taxes Management Act 1970 (power tocall for documents of taxpayer and others) shall be amended in accordance withsubsections (2) to (8) below.

(2)In subsection (1), for the words “a person” onwards there shall besubstituted the words “a person—

(a)to deliver to him such documents as are in the person’s possession orpower and as (in the inspector’s reasonable opinion) contain, or may contain,information relevant to—

(i)any tax liability to which the person is or may be subject, or

(ii)the amount of any such liability, or

(b)to furnish to him such particulars as the inspector may reasonably requireas being relevant to, or to the amount of, any such liability.”

(3)In subsection (2), for the words “a person” onwards there shall besubstituted the words “a person

(a)to deliver to a named officer of the Board such documents as are in theperson’s possession or power and as (in the Board’s reasonable opinion)contain, or may contain, information relevant to—

(i)any tax liability to which the person is or may be subject, or

(ii)the amount of any such liability, or

(b)to furnish to a named officer of the Board such particulars as the Boardmay reasonably require as being relevant to, or to the amount of, any suchliability.”

(4)In subsection (3)—

(a)for the words “of the persons who in relation to the taxpayer aresubject to this subsection” there shall be substituted the words “otherperson”, and

(b)at the end there shall be added the words “; and the persons who may berequired to deliver or make available a document under this subsection includethe Director of Savings.”

(5)Subsections (4) and (5) shall be omitted.

(6)In subsection (6)—

(a)for the words “under subsections (3) and (4)” there shall besubstituted the words “for the purposes of this section”, and

(b)the words “and in relation” onwards shall be omitted.

(7)For subsection (8) there shall be substituted—

“(8)Subject to subsection (8A) below, a notice under subsection (3) aboveshall name the taxpayer with whose liability the inspector (or, where section20B(3) below applies, the Board is concerned.”

(8)After subsection (8B) there shall be inserted—

“(8C)In this section references to documents do not include—

(a)personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984), or

(b)journalistic material (as defined in section 13 of that Act),

and references to particulars do not include particulars contained insuch personal records or journalistic material.

(8D)Subject to subsection (8C) above, references in this section to documentsand particulars are to those specified or described in the notice in question;and—

(a)the notice shall require documents to be delivered (or delivered or madeavailable), or particulars to be furnished, within such time (which, exceptin the case of a notice under subsection (2) above, shall not be less thanthirty days after the date of the notice) as may be specified in the notice;and

(b)the person to whom they are delivered, made available or furnished maytake copies of them or of extracts from them.”

(9)In section 12(3) of the M2 National Savings Bank Act1971, for the words “20(4)(b)” onwards there shall be substituted thewords “20(3) of that Act (requirement to deliver or make available documentsrelating to liability of a taxpayer).”

(10)This section shall apply with respect to notices given on or after the dayon which this Act is passed.

143 Power to call for papers of tax accountant.U.K.

(1)In section 20A of the M3 Taxes Management Act 1970 (powerto call for papers of tax accountant) for the lasr sentence of subsection (1)there shall be substituted—

“(1A)The reference to documents in subsection (1) above does not include—

(a)personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984), or

(b)journalistic material (as defined in section 13 of that Act).

(1B)Subject to subsection (1A) above, the reference to documents in subsection(1) above is to those specified or described in the notice in question;and—

(a)the notice shall require documents to be delivered within such time (whichshall not be less than thirty days after the date of the notice) as may bespecified in the notice; and

(b)the inspector may take copies of them or of extracts from them.”

(2)This section shall apply with respect to notices given on or after the dayon which this Act is passed.

144 Restrictions on powers under TMA ss.20 and 20A.U.K.

(1)Section 20B of the M4 Taxes Management Act 1970(restrictions on powers under sections 20 and 20A) shall be amended asfollows.

(2)In subsection (1), after the word “question” there shall be insertedthe words “, or to furnish the particulars in question”.

(3)After that subsection there shall be inserted—

“(1A)Subject to subsection (1B) below, where a notice is given to any personunder section 20(3) the inspector shall give a copy of the notice to thetaxpayer to whom it relates.

(1B)If, on an application by the inspector, a General or Special Commissionerso directs, a copy of a notice under section 20(3) need not be given to thetaxpayer to whom it relates; but such a direction shall not be given unlessthe Commissioner is satisfied that the inspector has reasonable grounds forsuspecting the taxpayer of fraud.”

(4)In subsection (2), after the words “deliver documents”, in the firstplace where they occur, there shall be inserted the words “or furnishparticulars”.

(5)In subsection (5), for the words from “if” to “or company” thereshall be substituted the words “does not oblige a person”.

(6)In subsection (7), the words from “to a person” to “daughter”shall be omitted.

(7)For subsection (9) there shall be substituted—

“(9)Subject to subsections (11) and (12) below, a notice under section 20(3)or (8A)—

(a)does not oblige a person who has been appointed as an auditor for thepurposes of any enactment to deliver or make available documents which are hisproperty and were created by him or on his behalf for or in connection withthe performance of his functions under that enactment, and

(b)does not oblige a tax adviser to deliver or make available documents whichare his property and consist of relevant communications.

(10)In subsections (9) above “relevant communications” meanscommunications between the tax adviser and —

(a)a person in relation to whose tax affairs he has been appointed, or

(b)any other tax adviser of such a person,

the purpose of which is the giving or obtaining of advice about any ofthose tax affairs; and in subsection (9) above and this subsection “tax adviser” means a person appointed to give advice aboutthe tax affairs of another person (whether appointed directly by that otherperson or by another tax adviser of his).

(11)Subject to subsection (13) below, subsection (9) above shall not haveeffect in relation to any document which contains information explaining anyinformation, return, accounts or other document which the person to whom thenotice is given has, as tax accountant, assisted any client of his inpreparing for, or delivering to, the inspector or the Board.

(12)Subject to subsection (13) below, in the case of a notice under section20(8A) subsection (9) above shall not have effect in relation to any documentwhich contains information giving the identity or address of any taxpayer towhom the notice relates or of any person who has acted on behalf of any suchperson.

(13)Subsection (9) above is not disapplied by subsection (11) or (12) abovein the case of any document if—

(a)the information within subsection (11) or (12) is contained in some otherdocument, and

(b)either—

(i)that other document, or a copy of it, has been delivered to the inspectoror the Board, or

(ii)that other document has been inspected by an officer of the Board.

(14)Where subsection (9) above is disapplied by subsection (11) or (12) abovein the case of a document, the person to whom the notice is given either shalldeliver the document to the inspector or make it available for inspection byan officer of the Board or shall—

(a)deliver to the inspector (or, where subsection (3) above applies, theBoard) a copy (which is photographic or otherwise by way of facsimile) of anyparts of the document which contain the information within subsection (11) or(12), and

(b)if so required by the inspector (or, as the case may be, the Board), makeavailable for inspection by a named officer of the Board such parts of thedocument as contain that information;

and failure to comply with any requirement under paragraph (b) aboveshall constitute a failure to comply with the notice.”

(8)This section shall apply with respect to notices given on or after the dayon which this Act is passed.

145 Falsification etc. of documents.U.K.

(1)After section 20B of the M5Taxes Management Act 1970there shall be inserted—

“20BB Falsification etc. of documents.

(1)Subject to subsections (2) to (4) below, a person shall be guilty of anoffence if he intentionally falsifies, conceals, destroys or otherwisedisposes of, or causes or permits the falsification, concealment, destructionor disposal of, a document which—

(a)he has been required by a notice under section 20 or 20A above, or

(b)he has been given an opportunity in accordance with section 20B(1) above,

to deliver, or to deliver or make available for inspection.

(2)A person does not commit an offence under subsection (1) above if heacts—

(a)with the written permission of a General or Special Commissioner, theinspector or an officer of the Board,

(b)after the document has been delivered or, in a case within section 20(3)or (8A) above, inspected, or

(c)after a copy has been delivered in accordance with section 20B(4) or (14)above and the original has been inspected.

(3)A person does not commit an offence under subsection (1)(a) above if heacts after the end of the period of two years beginning with the date on whichthe notice is given, unless before the end of that period the inspector or anofficer of the Board has notified the person in writing that the notice hasnot been complied with to his satisfaction.

(4)A person does not commit an offence under subsection (1) (b) above if heacts—

(a)after the end of the period of six months beginning with the date on whichan opportunity to deliver the document was given, or

(b)after an application for consent to a notice being given in relation tothe document has been refused.

(5)A person guilty of an offence under subsection (1) above shall beliable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding twoyears or to a fine or to both.”

(2)This section shall apply to any falsification, concealment, destructionor disposal of a document occurring on or after the day on which this Act ispassed.

146 Entry with warrant to obtain documents.U.K.

(1)Section 20C of the M6Taxes Management Act 1970 (entrywith warrant to obtain documents) shall be amended as follows.

(2)In subsection (1)—

(a)for the words “any form of fraud” there shall be substituted thewords “serious fraud”, and

(b)for the words “has been” there shall be substituted the words “isbeing, has been or is about to be”.

(3)After that subsection there shall be inserted—

“(1A)Without prejudice to the generality of the concept of serious fraud—

(a)any offence which involves fraud is for the purposes of this section anoffence involving serious fraud if its commission had led, or is intended orlikely to lead, either to substantial financial gain to any person or toserious prejudice to the proper assessment or collection of tax; and

(b)an offence which, if considered alone, would not be regarded as involvingserious fraud may nevertheless be so regarded if there is reasonable groundfor suspecting that it forms part of a course of conduct which is, or but forits detection would be, likely to result in serious prejudice to the properassessment or collection of tax.

(1B)The powers conferred by a warrant under this section shall not beexercisable—

(a)by more than such number of officers of the Board as may be specified inthe warrant;

(b)outside such times of day as may be so specified;

(c)if the warrant so provides, otherwise than in the presence of a constablein uniform.”

(4)For subsections (3) to (5) there shall be substituted—

“(3)An officer who enters the premises under the authority of a warrant underthis section may—

(a)take with him such other persons as appear to him to be necessary;

(b)seize and remove any things whatsoever found there which he has reasonablecause to believe may be required as evidence for the purposes of proceedingsin respect of such an offence as is mentioned in subsection (1) above; and

(c)search or cause to be searched any person found on the premises whom hehas reasonable cause to believe to be in possession of any such things;

but no person shall be searched except by a person of the same sex.

(4)Nothing in subsection (3) above authorises the seizure and removal ofdocuments in the possession of a barrister, advocate or solicitor with respectto which a claim to professional privilege could be maintained.

(5)An officer of the Board seeking to exercise the powers conferred by awarrant under this section or, if there is more than one such officer, thatone of them who is in charge of the search—

(a)if the occupier of the premises concerned is present at the time thesearch is to begin, shall supply a copy of the warrant endorsed with his nameto the occupier;

(b)if at that time the occupier is not present but a person who appears tothe officer to be in charge of the premises is present, shall supply such acopy to that person; and

(c)if neither paragraph (a) nor paragraph (b) above applies, shall leave sucha copy in a prominent place on the premises.

(6)Where entry to premises has been made with a warrant under this section,and the officer making the entry has seized any things under the authority ofthe warrant, he shall endorse on or attach to the warrant a list of the thingsseized.

(7)Subsections (10) to (12) of section 16 of the Policeand Criminal Evidence Act 1984 (return, retention and inspection of warrants)apply to a warrant under this section (together with any list endorsed on orattached to it under subsection (6) above) as they apply to a warrant issuedto a constable under any enactment.

(8)Subsection (7) above extends to England and Wales only.”

(5)This section shall apply with respect to warrants issued on or after theday on which this Act is passed.

147 Procedure where documents etc. are removed.U.K.

(1)The following section shall be inserted after section 20C of the M7Taxes Management Act 1970—

“20CC Procedure where documents etc. are removed.

(1)An officer of the Board who removes anything in the exercise of the powerconferred by section 20C above shall, if so requested by a person showinghimself—

(a)to be the occupier of premises from which it was removed, or

(b)to have had custody or control of it immediately before the removal,

provide that person with a record of what he removed.

(2)The officer of the Board shall provide the record within a reasonable timefrom the making of the request for it.

(3)Where anything which has been removed by an officer of the Board asmentioned in subsection (1) above is of such a nature that a photograph orcopy of it would be sufficient—

(a)for use as evidence at a trial for an offence, or

(b)for forensic examination or for investigation in connection with anoffence,

it shall not be retained longer than is necessary to establish that factand to obtain the photograph or copy.

(4)Subject to subsection (8) below, if a request for permission to be grantedaccess to anything which—

(a)has been removed by an officer of the Board, and

(b)is retained by the Board for the purpose of investigating an offence,

is made to the officer in overall charge of the investigation by a personwho had custody or control of the thing immediately before it was so removedor by someone acting on behalf of any such person, the officer shall allow theperson who made the request access to it under the supervision of an officerof the Board.

(5)Subject to subsection (8) below, if a request for a photograph or copy ofany such thing is made to the officer in overall charge of the investigationby a person who had custody or control of the thing immediately before it wasso removed, or by someone acting on behalf of any such person, the officershall—

(a)allow the person who made the request access to it under the supervisionof an officer of the Board for the purpose of photographing it or copying it,or

(b)photograph or copy it, or cause it to be photographed or copied.

(6)Where anything is photographed or copied under subsection (5)(b) above thephotograph or copy shall be supplied to the person who made the request.

(7)The photograph or copy shall be supplied within a reasonable time from themaking of the request.

(8)There is no duty under this section to grant access to, or to supply aphotograph or copy of, anything if the officer in overall charge of theinvestigation for the purposes of which it was removed has reasonable groundsfor believing that to do so would prejudice—

(a)that investigation;

(b)the investigation of an offence other than the offence for the purposesof the investigation of which the thing was removed; or

(c)any criminal proceedings which may be brought as a result of—

(i)the investigation of which he is in charge, or

(ii)any such investigation as is mentioned in paragraph (b) above.

(9)Any reference in this section to the officer in overall charge of theinvestigation is a reference to the person whose name and address are endorsedon the warrant concerned as being the officer so in charge.”

(2)This section shall apply with respect to warrants issued on or after theday on which this Act is passed.

148 Interpretation.U.K.

(1)Section 20D of the M8Taxes Management Act 1970 shall beamended as follows.

(2)In subsection (2), for the words “of returns or accounts to be made ordelivered by the other” there shall be substituted the words “or deliveryof any information, return, accounts or other document which he knows will be,or is or are likely to be, used”.

(3)For subsection (3) there shall be substituted—

“(3)Without prejudice to section 127 of the Finance Act1988, in sections 20 to 20CC above “document” has, subject to sections 20(8C) and 20A(1A), thesame meaning as it has—

(a)in relation to England and Wales, in Part I of the Civil Evidence Act 1968,

(b)in relation to Scotland, in Part III of the Law Reform(Miscellaneous Provisions) (Scotland) Act 1968, and

(c)in relation to Northern Ireland, in Part I of the Civil Evidence Act (Northern Ireland) 1971.”

(4)Subsection (3) above shall not affect the meaning of “business” in sections 20 and 20C of the M9Taxes Management Act 1970 before the coming into force of sections 142and 146 above.