Offshore matters: penalties for enablers of offshore tax evasion or non-compliance: in what circumstances is a penalty payable
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 (FA16/Sch20/Para1).
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 civil penalty relating to income tax, capital gains tax or inheritance tax.
The relevant offences are
- cheating the public revenue involving offshore activity
- fraudulent evasion of income tax involving offshore activity (TMA70/S106A)
being chargeable to income tax or capital gains tax on or by reference to offshore income, assets or liabilities, as a result of
- failing to give notice of being chargeable to tax (TMA70/S106B)
- failing to deliver a return (TMA70/S106C)
- making an inaccurate return (TMA70/S106D).
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