1. A practical guide on the powers of HMRC Presentation by: Sue Bradshaw Date: 3 September 2009 The Paper Trail

2. Sue Bradshaw BTG-Tax Former Senior Tax Investigator in HMRC – 25 years Headed HMRC Specialist Investigations Civil Fraud Investigators in London Board of HMRC National Offshore Project team 7 years in private practice assisting individuals and companies with taxation matters Tel no: +_44 (0) 207 024 8374 Mobile: +_44 (0) 7765 095459 E-mail: sue.bradshaw@btg-tax.com

3. Sue Bradshaw BTG-Tax HMRC information powers – new rules HMRC penalties – new rules Risk assessment etc. UK compliance activity in the offshore arena New Disclosure Opportunity and Liechtenstein Disclosure Facility

4. Sue Bradshaw BTG-Tax New Powers and Penalties Overhaul of HMRC Powers and Penalties Brings together Inland Revenue and Customs Behaviour based legislation Information and Inspection powers

5. Sue Bradshaw BTG-Tax New Powers – From 1 April 2009 HMRC have new powers to: gather information and examine documents Inspect business premises and business assets and business documents on those premises check records before filing But Info/docs must reasonably be required to check a person’s tax position Still some restrictions for some types of highly confidential information Safeguards to ensure HMRC act reasonably

6. Sue Bradshaw BTG-Tax New Penalties- from 1 April 2009 Return periods on/after 1 April 2008 and due to be filed on/after 1 April 2009 Submission of incorrect document All taxes Now applies to Understatements and Inflated losses No penalty for mistake Fixed band penalties related to behaviour

7. Sue Bradshaw BTG-Tax 100% 0% Deliberate Max 30% Min 15% (with PD) Min 0% (with UPD) Max 70% Min 35% (with PD) Min 20% (with UPD) Max 100% Min 50% (with PD) Min 30% (with UPD) Failure to take reasonable care understatement with concealment Mistake Deliberate understatement Ranges of Penalties (Sch 24 Para10 FA 2007) UPD = Unprompted disclosure PD = Prompted disclosure

8. Sue Bradshaw BTG-Tax ‘Old’ Penalty Regime v New Regime Paying the penalty – HMRC new approach to compliance

9. Sue Bradshaw BTG-Tax HMRC’s Compliance Activity – New procedures Disclosure of Tax Avoidance Schemes Litigation and Settlement Strategy Risk Assessment for Large Corporates Personal Tax Accountability of Senior Accounting Officer Publishing the names of deliberate tax defaulters

10. Sue Bradshaw BTG-Tax HMRC’s Compliance Activity - Offshore ‘Amnesty’ - 2007 Offshore Disclosure Facility Offshore Bank Data - information notices to 308 banks – very recently ‘Amnesty’ - New disclosure opportunity – 1 September 2009 to 12 March 2010 - Liechtenstein Disclosure Facility – 1 September 2009 to 31 March 2010 Cross Border Cooperation – G20, various Exchange agreements - Bermuda- Jersey- Anguilla - Isle of Man- Guernsey- Turks and Caicos - Gibraltar- BVI- Liechtenstein

11. Sue Bradshaw BTG Tax Summary New powers and penalties Document retention Guidance/plan for Inspections Manage information/inspection notices Voluntary disclosure will reduce penalties Risk assessment/SAO certificate Ensure systems and processes are robust Overseas accounts/companies/assets properly managed and disclosed Use NDO/LDF if appropriate to gain beneficial settlement

12. Sue Bradshaw BTG-Tax Questions.