Statement by the Maltese EU Presidency on the cases of Mr. M. Bokayev and Mr. T. Ayan in Kazakhstan

HMRC are responsible for— Treasury regulations may make provision about or in connection with— The following provisions of this Schedule do not limit the generality of the powers under sub-paragraph (2).

A Help-to-Save account may be opened for an individual if— Treasury regulations may make provision about applications to open a Help-to-Save account, including (in particular)— Treasury regulations may— Where a contract is entered into by an individual who is 16 or 17 years old in connection with a Help-to-Save account opened for the individual, the contract has effect as if the individual had been 18 or over when it was entered into.

Treasury regulations may make provision having effect in a case where a Help-to-Save account is opened for an individual who is not an eligible person on the eligibility reference dates, including where that is established as a result of a determination made with backdated effect after the account is opened for the individual. The regulations may (in particular) provide for the account to be treated as never having been a Help-to-Save account.

The second benefit entitlement condition is that— Conditions specified under sub-paragraph (1)(b) may (in particular) be framed by reference to the single hourly rate for the time being prescribed under section 1(3) of the National Minimum Wage Age 1998. In sub-paragraph (1) “specified” means specified in Treasury regulations.

This paragraph applies if there is a time when any investments held under a Lifetime ISA are attributable, directly or indirectly, to an amount paid by way of bonus for any qualifying additions. An officer of Revenue and Customs may— if the officer reasonably requires to inspect the documents in connection with establishing whether there have been any withdrawals from the Lifetime ISA and, if so, the details of any such withdrawals. Each of the following is a “relevant person” for the purposes of sub-paragraph (2)— See also paragraph 15.

Treasury regulations may— With regards to claims for bonuses, Treasury regulations may— Treasury regulations may authorise HMRC to specify any of the matters mentioned in sub-paragraph (2)(b) to (d).

Treasury regulations may make provision— The provision that may be made under sub-paragraph (1)(a) includes (in particular) provision about— The provision that may be made under sub-paragraph (1)(e) includes (in particular) provision applying or incorporating, with or without modifications, any enactment relating to the payment, collection or management of a tax. In this paragraph “withdrawal charge” means an amount payable under paragraph 8. Treasury regulations may authorise HMRC to specify any of the matters mentioned in sub-paragraph (2)(a) to (d).

Treasury regulations may, in connection with any stipulation that (directly or indirectly) links entitlement to bonus in respect of a Help-to-Save account with the presence in the United Kingdom of the individual for whom the account is opened— Paragraphs 44, 45, 46(1), 47 to 49 and 52 of Schedule 36 to the Finance Act 2008 (penalties: liability, assessment, appeals and enforcement) apply in relation to a penalty under regulations under sub-paragraph (1)(b) as they apply in relation to a penalty under paragraph 39 of that Schedule. An assessment of a penalty under regulations under sub-paragraph (1)(b) must be made— Without prejudice to paragraph 49(2) of Schedule 36 to the Finance Act 2008 (enforcement) as applied by sub-paragraph (2), regulations under sub-paragraph (1)(b) may (in particular) provide for a penalty under such regulations to be deducted from amounts to be paid by way of bonus in respect of the Help-to-Save account concerned.

For the purposes of this Act, an account is a “Help-to-Save account” if— An account which is a Help-to-Save account ceases to be a Help-to-Save account— Treasury regulations may make provision for an account to be treated as a Help-to-Save account. In this Schedule “the eligibility reference dates”, in relation to an account, means the following dates— For the purposes of this Schedule, a Help-to-Save account is opened for an individual if the account is opened and the individual is the person beneficially entitled to all money in the account. In this Schedule “the maturity period”, in relation to a Help-to-Save account, means— Treasury regulations may make provision for the purposes of sub-paragraph (6)(b) about when an individual is to be considered to become terminally ill.

Help-to-Save accounts may be provided only by an authorised account provider. In this Act “authorised account provider” means— Treasury regulations may make provision about approvals under sub-paragraph (2)(a), including (in particular) provision as to— In sub-paragraph (5) “retiring provider” means a person or body that— whether the cessation is total or partial, and whether or not it is on account of withdrawal of approval. Treasury regulations may make provision requiring a retiring provider to provide—

Treasury regulations may provide for the repayment of any amount paid by way of bonus that ought not to have been paid. The regulations may (in particular) make provision— The provision that may be made under sub-paragraph (2)(c) includes (in particular) provision applying or incorporating, with or without modifications, any enactment that makes provision in relation to the recovery of amounts of income tax or capital gains tax which has been repaid to a person but which ought not to have been repaid to the person.

In this Schedule “bonus” means a government bonus under section 2.

Treasury regulations may make provision about—

This paragraph applies where— Condition A is that the inaccuracy is careless or deliberate. An inaccuracy is careless if it is due to a failure by the claimant to take reasonable care. Condition B is that the claimant knows of the inaccuracy at the time the claim is made but does not inform an officer of Revenue and Customs at that time. Condition C is that the claimant— The claimant is liable to a penalty not exceeding the amount for the time being specified in paragraph 40A(5) of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents). Where the information contains more than one material inaccuracy, a penalty is payable for each inaccuracy. Paragraphs 46 to 49 and 52 of Schedule 36 to the Finance Act 2008 (penalties: assessment, appeals and enforcement) apply in relation to a penalty under this paragraph as they apply in relation to a penalty under paragraph 40A of that Schedule.

Except as provided by or under paragraph 7, this paragraph applies in relation to a withdrawal from a Lifetime ISA. An amount, equal to the total of— is to be paid (in sterling) to HMRC. Where there is a plan manager of the Lifetime ISA at the time of the withdrawal— Otherwise, the investor is liable to HMRC for the amount payable under sub-paragraph (2). In sub-paragraph (2) “specified” means specified by Treasury regulations. In relation to a withdrawal specified under paragraph 7(4), sub-paragraph (3) has effect as if it provided as follows— Treasury regulations may make provision for the amount payable under sub-paragraph (2) in the case of a withdrawal to be calculated not as mentioned in that sub-paragraph but in accordance with the regulations. A percentage specified under sub-paragraph (2), or provision made under sub-paragraph (7), may be such that the amount payable to HMRC under sub-paragraph (2) in the case of a withdrawal is greater than so much of the withdrawal as is attributable, directly or indirectly, to bonuses.

The first benefit entitlement condition is that— In sub-paragraph (1) “specified” means specified in Treasury regulations.

Treasury regulations may— Regulations under sub-paragraph (1)(a) may (in particular) frame a benefit entitlement condition by reference to having a notice of eligibility issued by HMRC and, in that event, the regulations may make provision—

This paragraph applies if there is a time when any investments held under a Lifetime ISA are attributable, directly or indirectly, to an amount paid by way of bonus for any qualifying additions. An officer of Revenue and Customs may by notice require a relevant person— if the officer reasonably requires the information or document in connection with establishing whether there have been any withdrawals from the Lifetime ISA and, if so, the details of any such withdrawals. Each of the following is a “relevant person” for the purposes of sub-paragraph (2)— Paragraphs 6(2), 7, 8, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the Finance Act 2008 (information notices etc) apply in relation to notices under sub-paragraph (2) as they apply in relation to notices under paragraph 1 of that Schedule (see the definition of “information notice” in paragraph 6(1) of that Schedule). Where a notice under sub-paragraph (2) is given to a person other than the plan manager of the Lifetime ISA at the time the notice is given, an officer of Revenue and Customs must give a copy of the notice to that plan manager. A person who is given a notice under sub-paragraph (2) may appeal against the notice or any requirement in the notice. Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedure for appeals against information notices) applies for the purposes of an appeal under sub-paragraph (6) as it applies for the purposes of an appeal under Part 5 of that Schedule, except that a reference to an information notice has effect as a reference to a notice under sub-paragraph (2).

This paragraph applies where a claim is made for a bonus for any qualifying additions. An officer of Revenue and Customs may— if the officer reasonably requires to inspect the documents in connection with the claim. A person is a “relevant plan manager” for the purposes of this paragraph if the person— See also paragraph 15.

Sub-paragraph (2) applies to a person who— The person is liable to a penalty of the amount for the time being specified in paragraph 39(2) of Schedule 36 to the Finance Act 2008. If the failure or obstruction mentioned in sub-paragraph (1) continues after the date on which a penalty is imposed under sub-paragraph (2) in respect of the failure or obstruction, the person is liable to a further penalty or penalties not exceeding the amount for the time being specified in paragraph 40(2) of that Schedule for each subsequent day on which the failure or obstruction continues. The reference in sub-paragraph (1)(b) to a person who fails to comply with a notice under paragraph 6(2) or 10(2) includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by (as the case may be) paragraph 6(3) or 10(4). Paragraphs 44 to 49 and 52 of Schedule 36 to the Finance Act 2008 (penalties: liability, assessment, appeals and enforcement) apply in relation to a penalty under sub-paragraph (2) or (3) as they apply in relation to a penalty under paragraph 39 or 40 of that Schedule, except that the reference in paragraph 46(3) to an information notice has effect as a reference to a notice under paragraph 6(2) or 10(2) of this Schedule. In sub-paragraph (1)(d) “the tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Sub-paragraph (2) applies to information which— Information to which this sub-paragraph applies may be disclosed to the Administrator for use for the purpose of establishing whether or not an individual is eligible for a bonus under the Help to Buy: ISA Scheme. In this paragraph— and paragraph 1(1) (meaning of “bonus”) does not apply for the purposes of this paragraph. Information disclosed in reliance on sub-paragraph (2) may not be further disclosed to any other person without the authority of HMRC (which may be general or specific). If revenue and customs information relating to a person is disclosed in contravention of sub-paragraph (4) and the identity of the person— section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) applies in relation to the disclosure as it applies in relation to a disclosure of such information in contravention of section 20(9) of that Act. In sub-paragraph (5) “revenue and customs information relating to a person” has the meaning given by section 19(2) of the Commissioners for Revenue and Customs Act 2005. A person who holds any information may disclose that information to HMRC or an officer of Revenue and Customs if the disclosure is made for the purposes of the exercise of any of the functions of HMRC, or an officer of Revenue and Customs, under section 1 and this Schedule. This paragraph does not limit the circumstances in which information may be disclosed apart from this paragraph.

Paragraph 8 does not apply to a withdrawal from a Lifetime ISA— Treasury regulations may specify other withdrawals from a Lifetime ISA to which paragraph 8 does not apply. Treasury regulations may provide, as an exception to sub-paragraph (1)(a), that paragraph 8 applies to a withdrawal from a Lifetime ISA if— Treasury regulations may specify withdrawals from a Lifetime ISA, which may be withdrawals within sub-paragraph (1)(b), to which paragraph 8— Treasury regulations may make provision supplementing sub-paragraph (1), including (in particular) provision about—

An account is not a Help-to-Save account unless— In sub-paragraph (1)(a) “the maximum monthly amount” means £50, or such other amount (which may be nil) as may be specified in Treasury regulations. Treasury regulations may specify whether the requirement imposed by sub-paragraph (1)(a) relates to— Treasury regulations made for the purposes of sub-paragraph (1)(b) may include provision about deciding whether requirements imposed by the regulations are met.

Treasury regulations may, in relation to cases where the balance in a Help-to-Save account held with an authorised account provider is transferred to an account held with another authorised account provider, make provision— If the Director of Savings provides Help-to-Save accounts— Arrangements made between HMRC and a person or body within paragraph 9(2)(b) or (c) may include provision for the making of payments by HMRC to the person or body in respect of the provision of Help-to-Save accounts.

Treasury regulations may provide for the repayment of any amount paid by way of bonus that ought not to have been paid (whether because of provision under paragraph 14 or otherwise). The regulations may (in particular) make provision— The provision that may be made under sub-paragraph (2)(c) includes (in particular) provisions applying or incorporating, with or without modifications, any enactment that makes provision in relation to the recovery of amounts of income tax or capital gains tax which has been repaid to a person but ought not to have been repaid to the person.

For the purposes of this Schedule, an individual is an “eligible person” on a particular day if— Treasury regulations may make provision for an individual to be treated as an eligible person for purposes of this Schedule.

The individual meets the “UK connection condition” if the individual is in the United Kingdom. Treasury regulations may—

This paragraph applies where— Condition A is that the inaccuracy is careless or deliberate. An inaccuracy is careless if it is due to a failure by the person to take reasonable care. Condition B is that the person knows of the inaccuracy at the time the information is provided, or the document is produced, but does not inform an officer of Revenue and Customs at that time. Condition C is that the person— The person is liable to a penalty not exceeding the amount for the time being specified in paragraph 40A(5) of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents). Where the information or document contains more than one material inaccuracy, a penalty is payable for each inaccuracy. Paragraphs 46 to 49 and 52 of Schedule 36 to the Finance Act 2008 (penalties: assessment, appeals and enforcement) apply in relation to a penalty under this paragraph as they apply in relation to a penalty under paragraph 40A of that Schedule.

The powers under paragraph 13(2) or 14(2)— In paragraphs 13(2) and 14(2) “business premises”, in relation to a person, means premises (or any part of premises) that an officer of Revenue and Customs has reason to believe are (or is) used in connection with the carrying on of a business by or on behalf of the person. Paragraph 12 of Schedule 36 to the Finance Act 2008 (timing of inspections) applies in relation an inspection under paragraph 13(2) or 14(2) as it applies in relation to an inspection under paragraph 10 of that Schedule. An officer of Revenue and Customs may not inspect a document under paragraph 13 or 14 if or to the extent that, by virtue of a provision of Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by paragraph 6(3) or 10(4), a notice under paragraph 6(2) or 10(2) given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document. An officer of Revenue and Customs may ask the tribunal to approve an inspection under paragraph 13(2) or 14(2). Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008 (approval of tribunal for inspections) applies in relation to an application under sub-paragraph (5) as it applies in relation to an application under paragraph 13 of that Schedule relating to an inspection under paragraph 10 of that Schedule. In this paragraph “the tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Treasury regulations may— With regards to claims for bonuses, Treasury regulations may— Treasury regulations may authorise HMRC to specify any of the matters mentioned in sub-paragraph (2)(b) to (d). Treasury regulations may make provision for requiring a person who is or was an authorised account provider— The provision that may be made under sub-paragraph (4)(b) includes (in particular) information about— Treasury regulations may authorise HMRC to specify any of the matters mentioned in sub-paragraph (5)(a) to (d).

This paragraph applies where a claim is made by an authorised account provider for a bonus in respect of a Help-to-Save account. An officer of Revenue and Customs may— if the officer reasonably requires to inspect the documents in connection with the claim. The powers under sub-paragraph (2)— In sub-paragraph (2) “business premises”, in relation to a person, means premises (or any part of premises) that an officer of Revenue and Customs has reason to believe are (or is) used in connection with the carrying on of a business by or on behalf of the person. Paragraph 12 of Schedule 36 to the Finance Act 2008 (timing of inspections) applies in relation an inspection under sub-paragraph (2) as it applies in relation to an inspection under paragraph 10 of that Schedule. An officer of Revenue and Customs may not inspect a document under this paragraph if or to the extent that, by virtue of a provision of Part 4 of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by paragraph 19(2), a notice under paragraph 19(1) given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document. An officer of Revenue and Customs may ask the tribunal to approve an inspection under sub-paragraph (2). Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008 (approval of tribunal for inspections) applies in relation to an application under sub-paragraph (7) as it applies in relation to an application under paragraph 13 of that Schedule relating to an inspection under paragraph 10 of that Schedule. In this paragraph “the tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

An officer of Revenue and Customs may by notice require— to provide the officer with any information, or to a produce a document to the officer, if the officer reasonably requires the information or document in connection with functions of HMRC, or an officer of Revenue and Customs, under section 2 or this Schedule. Paragraphs 6(2), 7, 8, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the Finance Act 2008 (information notices etc) apply in relation to notices under sub-paragraph (1) as they apply in relation to notices under paragraph 1 of that Schedule (see the definition of “information notice” in paragraph 6(1) of that Schedule). Where a notice under sub-paragraph (1) is given to a person other than the provider of the Help-to-Save account at the time the notice is given, an officer of Revenue and Customs must give a copy of the notice to that provider. A person who is given a notice under sub-paragraph (1) may appeal against the notice or any requirement in the notice. Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedure for appeals against information notices) applies for the purposes of an appeal under sub-paragraph (4) as it applies for the purposes of an appeal under Part 5 of that Schedule, except that a reference to an information notice has effect as a reference to a notice under sub-paragraph (1).

HMRC are responsible for the payment and management of bonuses, subject to section 2.

Sub-paragraph (2) applies to a person who— The person is liable to a penalty of the amount for the time being specified in paragraph 39(2) of Schedule 36 to the Finance Act 2008. If the failure or obstruction mentioned in sub-paragraph (1) continues after the date on which a penalty is imposed under sub-paragraph (2) in respect of the failure or obstruction, the person is liable to a further penalty or penalties not exceeding the amount for the time being specified in paragraph 40(2) of that Schedule for each subsequent day on which the failure or obstruction continues. The reference in sub-paragraph (1)(c) to a person who fails to comply with a notice under paragraph 19(1) includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43 of Schedule 36 to the Finance Act 2008 as applied by paragraph 19(2). Paragraphs 44 to 49 and 52 of that Schedule (penalties: liability, assessment, appeals and enforcement) apply in relation to a penalty under sub-paragraph (3) or (4) as they apply in relation to a penalty under paragraph 39 or 40 of that Schedule, except that the reference in paragraph 46(3) to an information notice has effect as a reference to a notice under paragraph 19(1) of this Schedule. In sub-paragraph (1)(d) “the tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Sub-paragraph (2) applies to a person who, in complying with a requirement under paragraph 11(2) when applying for a Help-to-Save account, provides information that is inaccurate if the inaccuracy is material and deliberate. The person is liable to a penalty of the amount for the time being specified in paragraph 39(2) of Schedule 36 to the Finance Act 2008. Paragraphs 46 to 49 and 52 of that Schedule (penalties: assessment, appeals and enforcement) apply in relation to a penalty under sub-paragraph (2) as they apply in relation to a penalty under paragraph 39 of that Schedule.

Sub-paragraph (2) applies to information which is held as mentioned in section 18(1) of the Commissioners for Revenue and Customs Act 2005 (confidentiality). Information to which this sub-paragraph applies may be disclosed— Information disclosed in reliance on sub-paragraph (2) may not be further disclosed to any other person without the authority of HMRC (which may be general or specific). If revenue and customs information relating to a person is disclosed in contravention of sub-paragraph (3) and the identity of the person— section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) applies in relation to the disclosure as it applies in relation to a disclosure of such information in contravention of section 20(9) of that Act. In sub-paragraph (4) “revenue and customs information relating to a person” has the meaning given by section 19(2) of the Commissioners for Revenue and Customs Act 2005. A person who holds information may disclose that information to HMRC or an officer of Revenue and Customs if the disclosure is made for the purposes of the exercise of any of the functions of HMRC, or an officer of Revenue and Customs, under section 2 and this Schedule. This paragraph does not limit the circumstances in which information may be disclosed apart from this paragraph. In section 127 of the Welfare Reform Act 2012 (information-sharing between Secretary of State and HMRC), in subsection (7), in the definition of “HMRC function”—

This paragraph applies where— Condition A is that the inaccuracy is careless or deliberate. An inaccuracy is careless if it is due to a failure by the person to take reasonable care. Condition B is that the person knows of the inaccuracy at the time the information is provided or the document is produced, but does not inform an officer of Revenue and Customs at that time. Condition C is that the person— The person is liable to a penalty not exceeding the amount for the time being specified in paragraph 40A(5) of Schedule 36 to the Finance Act 2008 (penalties for inaccurate information and documents). Where the information or document contains more than one material inaccuracy, a penalty is payable for each inaccuracy. Paragraphs 46 to 49 and 52 of Schedule 36 to the Finance Act 2008 (penalties: assessment, appeals and enforcement) apply in relation to a penalty under this paragraph as they apply in relation to a penalty under paragraph 40A of that Schedule.