Offshore matters: inaccuracies penalties: categorisation of overseas territories
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.
In some circumstances you will need to use the list for the date when the person discovers that there is an inaccuracy in a document that they have already submitted. Do this if
- when the person originally submitted the return the inaccuracy was not careless or deliberate, and
- they then discover the inaccuracy in the document but fail to take reasonable steps to tell us, see CH81080.
For example, Sara submits the return in June 2013, not carelessly or deliberately. She discovers it was inaccurate in August 2013 but does not take reasonable steps to tell us. Use the category list for inaccurate documents submitted on or after 24 July 2013.
The Treasury may move a territory between categories. However, the categorisation only applies from the date on which the order comes into force.
So you must always check to make sure you identify the correct category that an overseas territory was in at the date when the person gave the inaccurate return or other document to HMRC. You can then apply the appropriate maximum and minimum penalty percentages in CH82470 (category 1), CH116600 (category 2) or CH116700 (category 3).