CH124400 | Offshore matters: penalties for enablers of offshore tax evasion or non-compliance: conditions to be met for a penalty to apply

Conditions A and B must both be met for a penalty to apply under FA16/Sch20.

Condition A

Condition A is met where a person knew that when their actions were carried out, those actions enabled, or were likely to enable another person to carry out offshore tax evasion or non-compliance.

Enabling is where a person has encouraged, assisted or otherwise facilitated a person to do something that renders them liable to a relevant offence or penalty, see CH124300.

Condition A will only be met if the relevant offence has actually been committed - not merely attempted.

Condition B

Condition B is met where

• a person has been convicted of a relevant offence and the conviction is final, see CH124300, or

• a person is liable to a relevant penalty and the penalty is final, see CH124300, or

• a contract settlement has been reached under which the Commissioners undertake not to assess a relevant penalty or seek recovery if already assessed.

A relevant offence or a penalty becomes final when the appeal deadline has passed, or any appeal rights are exhausted.

Condition B is met if any part of the relevant offence or relevant penalty relates to tax evasion or non-compliance that involves an offshore activity, see CH124500.

Interaction between Condition A and B

Condition A needs to be considered and evaluated separately from condition B. The fact that condition B has been met does not of itself provide evidence that condition A is met.