SolvedCH124300 | Offshore matters: penalties for enablers of offshore tax evasion or non-compliance: in what circumstances is a penalty payable
From HM Revenue & Customs · Compliance Handbook
A penalty is chargeable where a person has encouraged, assisted or otherwise facilitated another person to carry out offshore tax evasion or non-compliance, and the two conditions at CH124400 are satisfied.
A person carries out offshore tax evasion or non-compliance if they
commit a relevant offence, or
engage in conduct that makes them liable to a relevant penalty relating to income tax, capital gains tax or inheritance tax.
Relevant offences
The relevant offences are
cheating the public revenue involving offshore activity
fraudulent evasion of income tax involving offshore activity (TMA70/S106A)
failing to give notice of being chargeable to tax, when chargeable to income tax or capital gains tax by reference, in whole or in part, to offshore income, assets or activities (TMA70/S106B)
failing to deliver a return when chargeable to income tax or capital gains tax by reference, in whole or in part, to offshore income, assets or activities (TMA70/S106C)
making an inaccurate return when chargeable to income tax or capital gains tax by reference, in whole or in part, to offshore income, assets or activities (TMA70/S106D).
Relevant penalties
A relevant penalty is an existing penalty involving an offshore activity that relates to
inaccuracies in a document (FA07/Sch24/Para1)
failure to notify (FA08/Sch41/Para1)
failure to file on time (FA09/Sch55/Para6)
relevant offshore asset moves (FA15/Sch21/Para1).
For detailed guidance on the