1. HMRC: New powers, and the “amnesty” post-22 June Phil Berwick Director, Tax Investigations, Tenon 1

2. HMRC Offshore Disclosure Facility The “amnesty” 2

3. “Amnesty” in numbers 17 April 2007 - Offshore Disclosure Facility launched 22 June 2007 – deadline notification 14 June 2007 – HMRC issue 200,000 letters 100,000 – number of notifications expected 60,000 – approximate number of notifications made 3

4. What happens now? Late notifications accepted where “reasonable excuse” HMRC to investigate Minimum penalty 30% Prosecution threat HMRC action anticipated from 9 July Still best to approach HMRC first! 4

5. New powers for inspectors “Modernising powers, deterrents and safeguards” series “A new approach to compliance checks”, issued 17 May Subjects covered in the document include: Segmentation Powers Time limits 5

6. Background ITSA, CTSA, PAYE, NIC, VAT Level playing-field for taxpayers “reasonable and proportionate right to make checks” Interventions Current system Compliance regimes not aligned (cost/error/inconvenience) Some less effective than they should be 6

7. Proposed new powers Current business records Entry to business premises Unannounced visits Entry to private residences Information powers 7

8. Current business records Current position – no right to see for IT/CT Introduced in interventions project “easier for all parties” Viewed at business premises No right of appeal Who determines what are “adequate” records? 8

9. Entry to business premises Current position – only by invitation or search warrant New power to “enter” and “look” at business premises “Normally” arranged in advance No access to “purely” private areas Removal/marking of goods No right of appeal 9

10. Unannounced visits Current position Possible safeguards considered Visits at a reasonable time Pre-authorisation from a senior officer Statute Code of Practice No right of appeal 10

11. Entry to private residences Current position – only by invitation or search warrant Total ban on entry not an option Will apply where mixed-use Inspect business assets or stock 11

12. Information powers Current position – ITSA/CTSA, S 20 TMA 1970 First party information power Documents and information Right of appeal Third party information power Documents No third party authorisation Right of appeal 12

13. Information powers (2) Some pre-authorisation of requests envisaged “reasonable and proportionate response” to risk S20 (8A) TMA 1970 power would remain 13

14. Summary Document available at www.hmrc.gov.uk/consultations/index.htm www.hmrc.gov.uk/consultations/index.htm Comments should be sent to powers.review-of- HMRC@hmrc.gsi.gov.ukpowers.review-of- HMRC@hmrc.gsi.gov.uk Deadline for comments is 10 August 2007 14