CH401282 - Charging penalties: charging penalties: introduction: offshore enabler's penalties: quality of disclosure
When calculating penalties under Schedule 20 FA2016, you must take into account the quality of the enabler’s disclosure.
The quality of disclosure or assistance provided by an enabler will need to take into account their disclosure relating to both:
- the wrongdoing of the person who has carried out the evasion or non-compliance (meaning the person who meets Condition B - see CH124400)
- their own enabling of this wrongdoing.
When calculating penalties you must take account of how long it took the enabler to come forward. If they took a significant period (normally 3 years or more) to tell us how they encouraged, assisted or otherwise facilitated another person to carry out offshore tax evasion or non-compliance you will not normally give full reduction for disclosure.
To help you calculate the quality of disclosure, these elements have been allocated the following percentages within the allowable reduction.
| Type | Percentage |
|---|---|
| Telling | Up to 30% |
| Helping | Up to 40% |
| Giving | Up to 30% |
| Total | 100% maximum reduction |
You must decide what percentage to allow for each of the 3 elements.
To get a full reduction the enabler should have:
- co-operated fully with HMRC
- provided all information within their power
- responded without any delay and helped HMRC calculate the shortfall.
Partial co-operation, partial disclosure and delay will result in a lower penalty reduction.
You would give little or no penalty reduction if they:
- chose not to co-operate or
- were obstructive.
For further guidance on quality of disclosure, see CH124650 and CH403203.