On 9 March 2017, the Asset-based Penalty for Offshore Inaccuracies and Failures (Reductions for Disclosure and Co-operation) Regulations 2017 (S.I. 2017/334) were made. These Regulations come into force on 1st April 2017. It specify the maximum amount by which the standard amount of an asset-based penalty imposed in accordance with Schedule 22 to the Finance Act 2016 (c. 24) may be reduced as required by paragraph 8 of that Schedule. For a person to be liable to the asset-based penalty, that person must also be liable to a penalty under Schedule 24 to the Finance Act 2007 (c. 11), Schedule 41 to the Finance Act 2008 (c. 9) or Schedule 55 to the Finance Act 2009 (c. 10) involving an offshore matter or an offshore transfer.
The standard amount of the asset-based penalty may be reduced by up to 50% where the person liable to the penalty has made only unprompted disclosures of information etc. relating to the person’s tax affairs. In a case where person’s disclosure was made after being prompted to do so, the standard amount of the penalty may only be reduced by up to 20%.
