Schedule 23 | Data-gathering

From legislation.gov.uk

Part 1Power to require provision of data to HMRC on an ongoing basis

(1)The Treasury may by regulations make provision requiring a relevant data-holder to provide to HMRC on an ongoing basis any data specified for that type of relevant data-holder.

(2)Regulations under this paragraph may make provision requiring data to be provided—

(a)in relation to specified recurring periods;

(b)at specified times or within specified periods;

(c)in a specified form and manner.

(3)The power in this paragraph is exercisable only to assist with the efficient and effective discharge of HMRC's tax functions—

(a)whether a particular function or more generally, and

(b)whether involving a particular taxpayer or taxpayers generally.

(4)Regulations under this paragraph may not require a relevant data-holder to provide data for the purpose of HMRC checking the relevant data-holder’s own tax position.

(5)Sub-paragraph (4) does not—

(a)prevent regulations from requiring a relevant data-holder to provide data about a matter mentioned in paragraph 14(3)(a) of Schedule 23 to FA 2011 (beneficial ownership of certain payments etc), or

(b)limit the use that may be made of data obtained under this Schedule (see section 17(1) of CRCA 2005).

(6)In this Schedule “relevant data-holder” has the same meaning as in Schedule 23 to FA 2011 (data-gathering powers) (see Part 2 of that Schedule).

(1)A relevant data-holder is not required by regulations under paragraph 1 to provide data to HMRC unless the data are within their possession or power.

(2)The Treasury may by regulations make provision requiring a relevant-data holder to make reasonable efforts to obtain any specified identifying information that the relevant data-holder would, but for sub-paragraph (1), be required to provide to HMRC.

(3)In this Schedule “identifying information” means any information which identifies a person or an account including, in particular, a company’s registered number, a national insurance number, a unique taxpayer reference, a VAT registration number or any other unique government-issued identifier associated with a person or account.

(1)The Treasury may by regulations make provision requiring a relevant data-holder to—

(a)take specified steps to verify relevant data before providing them to HMRC,

(b)keep a record of—

(i)the relevant data, and

(ii)the steps taken by the relevant data-holder under paragraph (a) in relation to the relevant data, and

(c)preserve those records for a specified period.

(2)In this paragraph “relevant data” means data that a relevant-data holder is required by regulations under paragraph 1 to provide to HMRC.

(1)The Treasury may by regulations make provision requiring a relevant data-holder to provide data to a specified person (other than HMRC) in circumstances where—

(a)the relevant data-holder is required by regulations under paragraph 1 to provide the data to HMRC, and

(b)the data relate to the specified person.

(2)Regulations under this paragraph may make provision requiring data to be provided—

(a)at a specified time or within a specified period;

(b)in a specified form and manner.

(1)The Treasury may by regulations make provision requiring a relevant data-holder to notify HMRC in circumstances where the relevant data-holder is required by regulations under paragraph 1 to provide data to HMRC.

(2)Regulations under this paragraph may make provision requiring a notification to be given—

(a)within a specified period;

(b)in a specified form and manner.

(1)Where an officer of Revenue and Customs reasonably suspects that a person is not complying with their obligations under this Part of this Schedule, or regulations made under it, the officer may by notice require the person to provide such information as the officer reasonably requires in order to determine whether the person is complying with such obligations.

(2)Information required by a notice under this paragraph must be provided—

(a)within the period specified in the notice, being a period of no less than 30 days, and

(b)in the form and manner specified in the notice.

Part 2Penalties and appeals

(7)If a person fails to comply with a requirement in regulations under paragraph 1 (provision of data to HMRC on an ongoing basis) or paragraph 2 (data within possession or power), the person is liable—

(a)to a penalty not exceeding £5,000, and

(b)if the failure continues after notice of an assessment of a penalty under paragraph (a) is issued, to a penalty or penalties not exceeding £600 for each subsequent day on which the failure continues.

(1)If a person fails to comply with a requirement in regulations under paragraph 3(1)(a) (due diligence), the person is liable to a penalty not exceeding £100.

(2)Where the failure relates to verifying data about more than one person or account, a penalty is payable in respect of each person or account.

(9)If a person fails to comply with a requirement in regulations under paragraph 3(1)(b) or (c) (record-keeping), the person is liable to a penalty not exceeding £5,000.

(10)If a person fails to comply with a requirement in regulations under paragraph 4 (provision of data to persons other than HMRC), the person is liable—

(a)to a penalty not exceeding £5,000, and

(11)If a person fails to comply with a requirement in regulations under paragraph 5 (notification to HMRC), the person is liable to a penalty not exceeding £1,000.

(12)If a person fails to comply with a requirement in paragraph 6 (compliance), the person is liable—

(a)to a penalty not exceeding £5,000, and

(1)If a person, in purported compliance with a requirement in regulations under paragraph 1, provides inaccurate or incomplete data to HMRC, the person is liable to a penalty not exceeding £100 where—

(a)the inaccuracy or incompleteness is deliberate,

(b)the inaccuracy or incompleteness is due to a failure to take reasonable care, or

(c)the person discovers the inaccuracy or incompleteness some time later and fails to take reasonable steps to inform HMRC.

(2)Where the inaccuracy or incompleteness relates to data about more than one person or account, a penalty is payable in respect of each person or account.

(1)Liability to a penalty under any of paragraphs 7 to 12 does not arise if the person satisfies an officer of Revenue and Customs or, on an appeal notified to the tribunal, the tribunal that there is a reasonable excuse for the failure.

(2)For the purposes of this paragraph none of the following is a reasonable excuse—

(a)that there is an insufficiency of funds to do something;

(b)that a person relies upon another person to do something.

(3)If a person had a reasonable excuse for a failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

(1)A person is not liable to penalties under more than one of paragraph 8 (failure to apply due diligence procedures), paragraph 9 (failure to keep or preserve records) and paragraph 13 (inaccurate or incomplete data) in respect of the same act or omission.

(2)Where, apart from sub-paragraph (1), a person would be so liable, the person is liable to a penalty in respect of that act or omission under whichever one of paragraphs 8, 9 or 13 is, in the opinion of an officer of Revenue and Customs, appropriate in the circumstances.

(16)A person is not liable to a penalty under this Schedule in respect of anything in respect of which the person has been convicted of an offence.

(17)A failure to do anything required to be done within a limited period of time does not give rise to liability to a penalty under this Schedule if the thing was done within such further time (if any) as an officer of Revenue and Customs may have allowed.

(1)An officer of Revenue and Customs may assess a penalty under any of paragraphs 7 to 13 and set it at such amount as, in the opinion of the officer, is appropriate.

(2)Notice of an assessment of a penalty under this paragraph must—

(a)be given to the person liable to the penalty, and

(b)state the date on which it is issued and the time within which an appeal against the assessment may be made.

(3)Subject to sub-paragraph (4), after a notice of assessment of a penalty under this paragraph has been given, the assessment must not be altered except on appeal.

(4)If it is discovered by an officer of Revenue and Customs that the amount of a penalty under paragraph 7(b), 10(b) or 12(b) which has been assessed under this paragraph is or has become insufficient, the officer may make an assessment in a further amount so that the penalty is set at the amount which, in the opinion of that officer, is appropriate.

(1)An assessment of a penalty under paragraph 7, 9, 10, 11 or 12 must be made within the period of 12 months beginning with the date on which the person became liable to the penalty.

(2)An assessment of a penalty under paragraph 8 or 13 must be made—

(a)within the period of 12 months beginning with the date on which the inaccuracy, incompleteness or failure first came to the attention of an officer of Revenue and Customs, and

(b)within the period of 6 years beginning with the date on which the person became liable to the penalty.

(3)A penalty assessed under paragraph 18—

(a)is due and payable at the end of the period of 30 days beginning with the day on which the notice of assessment is issued, and

(b)is, subject to paragraph (a), to be treated for all purposes as if it were tax charged in an assessment and due and payable.

(1)A person may appeal against a penalty assessment under paragraph 18—

(a)on the grounds that liability to the penalty does not arise, or

(b)as to the amount of the penalty.

(2)Notice of an appeal must—

(a)state the grounds of appeal, and

(b)be given in writing to HMRC before the end of the period of 30 days beginning with the date on which notice of the assessment under paragraph 18 was issued.

(3)Subject to sub-paragraph (4), the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this paragraph as they have effect in relation to an appeal against an assessment to income tax.

(4)On an appeal under this paragraph that is notified to the tribunal, the tribunal may—

(a)if it appears that no liability to a penalty has arisen, set the assessment aside,

(b)if the amount assessed appears to be appropriate, confirm the assessment,

(c)if the amount assessed appears to be excessive, reduce it to such other amount (including nil) as the tribunal considers appropriate, or

(d)if the amount assessed appears to be insufficient, increase it to such amount not exceeding the permitted maximum as the tribunal considers appropriate.

Part 3General

(21)The Treasury may by regulations amend any of paragraphs 7 to 13 so as to increase or reduce the amount of a penalty for the time being specified in those paragraphs.

(1)Regulations under this Schedule may—

(a)make different provision for different purposes;

(b)provide for exceptions to any requirement imposed by the regulations;

(c)make provision by reference to things specified in a notice that is—

(i)published by HMRC in accordance with the regulations, and

(ii)not withdrawn by a further notice;

(d)make consequential, supplementary, incidental, transitional or saving provision.

(2)Regulations under paragraph 1 (provision of data to HMRC on an ongoing basis) or 3 (due diligence and record-keeping) may make provision by reference to a document as amended from time to time.

(3)Regulations under this Schedule are to be made by statutory instrument.

(4)A statutory instrument containing regulations under paragraph 21 (power to change amount of penalties) which increase the amount of a penalty by more than is necessary to reflect a change in the value of money may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

(5)Any other statutory instrument containing regulations under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.

(23)Subject to the provisions of this Schedule, the following provisions of TMA 1970 apply for the purposes of this Schedule as they apply for the purposes of the Taxes Acts—

(a)section 108 (responsibility of company officers);

(b)section 114 (want of form);

(c)section 115 (delivery and service of documents).

(1)This Schedule, other than a provision of it that confers a power to make regulations, applies to the Crown but not to His Majesty in His private capacity (within the meaning of the Crown Proceedings Act 1947).

(2)Regulations under this Schedule may be made so as to apply to the Crown, but not so as to apply to His Majesty in His private capacity (within the meaning of the Crown Proceedings Act 1947).

(25)In this Schedule—

“HMRC” means His Majesty’s Revenue and Customs;

“relevant data-holder” has the meaning given in paragraph 1;

“specified”, in relation to regulations, means specified or described in the regulations;

“tax” has the same meaning as in Schedule 23 to FA 2011 (see paragraph 45 of that Schedule);

“tribunal” means the First-tier Tribunal or Upper Tribunal as determined under Tribunal Procedure Rules.