SCHEDULES
SCHEDULE 41Penalties: failure to notify and certain VAT and excise wrongdoing
Amount of penalty: standard amount
F16A
1
A failure is in category 1 if—
a
it involves a domestic matter, or
b
it involves an offshore matter and—
i
the territory in question is a category 1 territory, or
ii
the tax at stake is a tax other than income tax or capital gains tax.
2
A failure is in category 2 if—
a
it involves an offshore matter F2or an offshore transfer,
b
the territory in question is a category 2 territory, and
c
the tax at stake is income tax or capital gains tax.
3
A failure is in category 3 if—
a
it involves an offshore matter F3or an offshore transfer,
b
the territory in question is a category 3 territory, and
c
the tax at stake is income tax or capital gains tax.
4
A failure “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—
a
income arising from a source in a territory outside the UK,
b
assets situated or held in a territory outside the UK,
c
activities carried on wholly or mainly in a territory outside the UK, or
d
anything having effect as if it were income, assets or activities of a kind described above.
F44A
A failure “involves an offshore transfer” if—
a
it does not involve an offshore matter,
b
it is deliberate (whether or not concealed) and results in a potential loss of revenue,
c
the tax at stake is income tax or capital gains tax, and
d
the applicable condition in paragraph 6AA is satisfied.
5
A failure “involves a domestic matter” if it results in a potential loss of revenue F5and does not involve either an offshore matter or an offshore transfer.
6
If a single failure is in more than one category (each referred to as a “relevant category”)—
a
it is to be treated for the purposes of this Schedule as if it were separate failures, one in each relevant category according to the matters F6or transfers that it involves, and
b
the potential lost revenue in respect of each separate failure is taken to be such share of the potential lost revenue in respect of the single failure (see paragraphs 7 and 11) as is just and reasonable.
7
For the purposes of this Schedule—
a
paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but
b
an order under that paragraph does not apply to relevant obligations that are to be complied with by a date before the date on which the order comes into force.
F78
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
In this paragraph F8and paragraph 6AA—
“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;
“UK” means the United Kingdom, including the territorial sea of the United Kingdom.