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I-4a: Financial institution notices

Power to obtain information and documents from financial institutions

"(1) An officer of Revenue and Customs may by notice in writing require a financial institution—

(a) to provide information, or

(b) to produce a document,

if conditions A and B are met.

...

(4) In this Schedule, “financial institution notice” means a notice under this paragraph." (FA 2008, Sch 36, 4A(1), (4))

Power to obtain information and documents from financial institutions

Condition A: not onerous to provide

"(2) Condition A is that the information or document is, in the reasonable opinion of the officer giving the notice, of a kind that it would not be onerous for the institution to provide or produce." (FA 2008, Sch 36, 4A(2))

Condition A: not onerous to provide

Condition B: reasonably required for the purpose of checking or collecting debt

"(3) Condition B is that the information or document is reasonably required by the officer—

(a) for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”), or

(b) for the purpose of collecting a tax debt of the taxpayer." (FA 2008, Sch 36, 4A(3))

Condition B: reasonably required for the purpose of checking or collecting debt

Must be authorised by authorised officer

 

"(5) A financial institution notice may be given by an officer of Revenue and Customs only if—

(a) the officer is an authorised officer of Revenue and Customs, or

(b) an authorised officer of Revenue and Customs has agreed to the giving of the notice." (FA 2008, Sch 36, 4A(5))

Must be authorised by authorised officer

Financial institution

 

"(1) In this Schedule “financial institution” means—

(a) a financial institution under the CRS other than one which is such an institution because (and only because) it is an investment entity within section VIII (A)(6)(b) of the CRS, or

(b) a person who issues credit cards.

(2) In this paragraph “the CRS” means the common reporting standard for automatic exchange of financial account information developed by the Organisation for Economic Co-operation and Development, as that standard has effect from time to time.” (FA 2008, Sch 36, 61ZA)

Financial institution

Procedure

 

Notice must name taxpayer

"(6) A financial institution notice must name the taxpayer to whom it relates." (FA 2008, Sch 36, 4A(6))

Must give copy of notice and summary of reasons to taxpayer

"(7) An officer of Revenue and Customs—

(a) must give a copy of a financial institution notice to the taxpayer to whom it relates, and

(b) must give the taxpayer a summary of the reasons why an officer of Revenue and Customs requires the information and documents." (FA 2008, Sch 36, 4A(7))

 

Disapplying requirement for name of taxpayer

"(8) An application (without notice) may be made to the tribunal by, or with the agreement of, an authorised officer of Revenue and Customs to disapply any of the requirements under sub-paragraph (6) or (7).

(9) The tribunal must grant the application to disapply the requirement under sub-paragraph (6) if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax.

(10) The tribunal must grant the application to disapply a requirement under sub-paragraph (7) if it is satisfied that complying with the requirement might prejudice the assessment or collection of tax." (FA 2008, Sch 36, 4A(8) - (10))

Procedure

Notice may include requirement not to disclose it

"(1) This paragraph applies if—

(a) a person (“P”) is given a third party notice or financial institution notice (“the notice”), and

(b) the tribunal has disapplied the requirement in paragraph 4(1) or 4A(7)(a) (as the case may be) to give a copy of the notice to the taxpayer to whom it relates.

 

(2) The notice may include a requirement that P must not disclose the notice, or anything relating to it, to—

(a) the taxpayer to whom the notice relates, or

(b) any other person, except for a purpose relating to compliance with the notice.

 

(3) A requirement imposed under sub-paragraph (2) has effect for a period of 12 months beginning with the day on which P is given the notice unless, before the end of that period—

(a) the requirement is withdrawn in accordance with sub-paragraph (4), or

(b) the period is extended in accordance with sub-paragraph (5).

 

(4)An officer of Revenue and Customs may, by notice in writing to P, withdraw a requirement imposed under sub-paragraph (2).

 

(5)An officer of Revenue and Customs may—

(a)by notice in writing to P, extend the period for which a requirement imposed under sub-paragraph (2) has effect for a further period of 12 months (beginning with the day after the last day of the previous period), and

(b)do so on one or more occasions.

 

(6)An officer of Revenue and Customs may act under sub-paragraph (4) or (5) only if—

(a)the officer is an authorised officer of Revenue and Customs, or

(b)an authorised officer of Revenue and Customs has agreed to the withdrawal of the requirement or the extension of the period (as the case may be).

 

(7)An authorised officer of Revenue and Customs may only extend, or agree to the extension of, a period under sub-paragraph (5) if that officer has reasonable grounds for believing that not doing so might prejudice the assessment or collection of tax." (FA 2008, Sch 36, 51A)

 

Penalty for non-compliance

"(1) A person who breaches a requirement imposed under paragraph 51A (not to disclose a notice or anything relating to it) is liable to a penalty of £1,000.

(2) If a person becomes liable for a penalty under sub-paragraph (1)—

(a)HMRC may assess the penalty, and

(b)if they do so, they must notify the person.

(3) The assessment must be made within the period of 12 months beginning with the date on which the breach of the requirement first came to the attention of an officer of Revenue and Customs.

(4) Paragraph 41 applies in relation to the sum specified in sub-paragraph (1) above as it applies in relation to the sums mentioned in paragraph 41(1) but as if—

(a)the reference in paragraph 41(2)(a) to this Act were to FA 2021, and

(b)paragraph 41(3) prevented the regulations from applying to any breach committed before the date on which the regulations come into force." (FA 2008, Sch 36, 51B)

 

Appeal against penalty

"(1) A person may appeal a decision of an officer of Revenue and Customs that a penalty is payable by the person under paragraph 51B.

(2) Paragraph 48 (procedure on appeal against penalty) applies in relation to an appeal under this paragraph as it applies in relation to an appeal under paragraph 47(1)(a) but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).

(3) Paragraph 49 (enforcement of penalty) applies in relation to a penalty under paragraph 51B as it applies in relation to a penalty under paragraph 39 but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).” (FA 2008, Sch 36, 51C)

 

 

Notice may include requirement not to disclose it
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