CH124900 - Offshore matters: penalties for enablers of offshore tax evasion or non-compliance: Schedule 36 information powers

Paragraph 18 of FA16/Sch20 modifies the application of Schedule 36 to enable HMRC to request information and documentation to check the position of a relevant person as regards their liability to a penalty under this schedule.

A relevant person is a person that an officer of HMRC has reason to suspect has, or may have, enabled offshore tax evasion or non-compliance by another person.

If an officer of HMRC has reason to believe a relevant person has, or may have, enabled offshore tax evasion or non-compliance by another person, Schedule 36 information powers can be used to gather information and examine documents or inspect business premises, for the purpose of checking a relevant person’s liability under paragraph 1 of Schedule 36.

These powers can be used to require a person to provide information or documents that are reasonably required to check whether the person is liable for an enabler penalty. HMRC officers must have a reason to suspect that the person to whom the notice is to be sent has enabled the evasion or non-compliance of another person which will resulted in a relevant offence or civil penalty, see CH124300. These powers can be used to check whether an enabler is liable to the offshore enabler penalty whilst HMRC is still considering whether the person they enabled has been involved in offshore tax evasion or offshore tax non-compliance.

Any Schedule 36 notice must only contain the minimum information about the person convicted of the relevant offence or non-compliance to allow the recipient to identify that person and be able to comply with the notice.

Although schedule 36 may be used to require information from a person to establish behaviours, there are very clear restrictions on this which you must adhere to, see CH402650.

The modified Schedule 36 information powers may be used for those suspected of being an enabler whether they are based in the UK or overseas. For further details see CH223150.

For details on what information or documents can be requested, see CH220000.

The powers are amended so the general restrictions on requiring an auditor or tax advisor to produce records do not apply.

There are factsheets covering the use of our information and inspection powers, see CH202025.

For an overview of our powers to ask for information or documents see, CH20200.

An overview of our powers to carry out an inspection can be found at CH20250 and detailed guidance starts at CH25000.