The Penalties, Offshore Income etc. (Designation of Territories) Order, SI 2011/976, designates certain territories as category 1 territories or as category 3 territories for the purpose of setting the penalties that may be charged for non-compliance with UK tax obligations in relation to offshore income, gains and assets. It comes into force on 6 April.
The level of such penalties is determined by FA 2007 Sch 24 (penalties for errors) as amended by FA 2010 Sch 10 (penalties: offshore income etc). Every territory in the world – other than the UK – falls into one of the three categories.
Existing penalty levels will apply to ‘category 1 inaccuracies’, but inaccuracies in category 2 and 3 are increased by factors of 1.5 and 2 respectively.
The Penalties, Offshore Income etc. (Designation of Territories) Order, SI 2011/976, designates certain territories as category 1 territories or as category 3 territories for the purpose of setting the penalties that may be charged for non-compliance with UK tax obligations in relation to offshore income, gains and assets. It comes into force on 6 April.
The level of such penalties is determined by FA 2007 Sch 24 (penalties for errors) as amended by FA 2010 Sch 10 (penalties: offshore income etc). Every territory in the world – other than the UK – falls into one of the three categories.
Existing penalty levels will apply to ‘category 1 inaccuracies’, but inaccuracies in category 2 and 3 are increased by factors of 1.5 and 2 respectively.
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