SolvedCH114400 | Offshore matters: failure to notify penalties: categories of overseas territories
From HM Revenue & Customs · Compliance Handbook
The Treasury decides which overseas territories fall into categories 1 and 3. They are specified by a Treasury Order. These orders are made by Statutory Instrument.
See below the lists of category 1 and category 3 overseas territories. Any territories not with categories 1 and 3 are in category 2. The correct list to use depends on the date when the failure to notify occurred.
Table displaying Territories for failure to notify that occurred on or before 23 July 2013
Note: The table below shows which territories are classified in ‘category 1’ and ‘category 3’ for the purposes of penalties for offshore non-compliance. Territories not listed here (other than the UK) are in ‘category 2’. Penalties for domestic (UK) matters fall into category 1.
| Category 1 | Category 3 |
|---|---|
| Anguilla | Palau |
| Aruba | Panama |
| Australia | Paraguay |
| Belgium | Peru |
| Bulgaria | Saint Kitts and Nevis |
| Canada | Saint Lucia |
| Cayman Islands | Saint Vincent and the Grenadines |
| Cyprus | San Marino |
| Czech Republic | Seychelles |
| Denmark (not including Faroe Islands and Greenland) | Saint Maarten |
| Estonia | Suriname |
| Finland | Syria |
| France | Tokelau |
| Germany | Tonga |
| Greece | Trinidad and Tobago |
| Guernsey | United Arab Emirates |
| Hungary | Uruguay |
| Ireland | - |
| Isle of Man | - |
| Italy | - |
| Japan | - |
| Korea, South | - |
| Lativa | - |
| Lithuania | - |
| Malta | - |
| Montserrat | - |
| Netherlands (not including Bonaire, Sint Eustatius and Saba) | - |
| New Zealand (not including Tokelau) | - |
| Norway | - |
| Poland | - |
| Portugal | - |
| Romania | - |
| Slovakia | - |
| Slovenia | - |
| Spain | - |
| Sweeden | - |
| United States of America (not including overseas territories and possessions) | - |
Table displaying Territories for failure to notify that occurred from 24 July 2013
The table below shows which territories are classified in ‘category 1’ and ‘category 3’ for the purposes of penalties for offshore non-compliance. Territories not listed here (other than the UK) are in ‘category 2’. Penalties for domestic (UK) matters fall into category 1.
Note: Crown Dependencies and Overseas Territories of the UK are, unless listed, in categor
| Category 1 | Category 3 |
|---|---|
| Anguilla | Albania |
| Aruba | Algeria |
| Australia | Andorra |
| Belgium | Bonaire, Sint Eustatius and Saba |
| Bulgaria | Brazil |
| Canada | Cameroon |
| Cayman Islands | Cape Verde |
| Cyprus | Colombia |
| Czech Republic | Congo, Republic of the |
| Denmark (not including Faroe Islands and Greenland) | Cook Islands |
| Estonia | Costa Rica |
| Finland | Curaçao |
| France (includes overseas Departments of France; the overseas collectivities of France are in category 2) | Cuba |
| Germany | Democratic People’s Republic of Korea |
| Greece | Dominican Republic |
| Guernsey (includes Alderney and Sark) | Ecuador |
| Ireland | El Salvador |
| Isle of Man | Gabon |
| Italy | Guatemala |
| Japan | Honduras |
| Korea, South | Iran |
| Latvia | Iraq |
| Lithuania | Jamaica |
| Malta | Kyrgyzstan |
| Montserrat | Lebanon |
| Netherlands (not including Bonaire, Sint Eustatius and Saba) | Macau (China and Hong Kong are in category 2) |
| New Zealand (not including Tokelau) | Marshall Islands |
| Norway | Micronesia, Federated States of |
| Poland | Monaco |
| Portugal (includes Madeira and the Azores) | Nauru |
| Romania | Nicaragua |
| Slovakia | Niue |
| Slovenia | Palau |
| Spain (includes the Canary Islands and other overseas territories of Spain) | Panama |
| Sweden | Paraguay |
| Switzerland | Peru |
| United States of America (not including overseas territories and possessions of the United States of America which are in category 2) | Seychelles |
| - | Sint Maarten |
| - | Suriname |
| - | Syria |
| - | Tokelau |
| - | Tonga |
| - | Trinidad and Tobago |
| - | United Arab Emirates |
| - | Uruguay |
The Treasury may move a territory between categories. However, the categorisation only applies from the date on which the order comes into force.
For income tax and capital gains tax there is an annual obligation to notify. If a disclosure is made that covers several years, there is a failure to notify for each year. A change of category between those years could result in different penalty maximums and minimums applying for failures for different years.
So you must always check to make sure you identify the correct category that an overseas territory was in at the date on which the person failed to notify HMRC. You can then apply the appropriate maximum and minimum penalty percentages in CH73200 (category 1), CH114600 (category 2) or CH114700 (category 3).