UK Offence Report

Refunds of foreign tax

regulation 10(8) of The Lloyd’s Underwriters (Double Taxation Relief) (Corporate Members) Regulations 2006

This offence was read from the text as made, and no revised version was available, so a later revocation could not be ruled out. Check the current text at legislation.gov.uk.

What the provision says

8 A corporate member which fails to comply with the requirements imposed by paragraphs (6) and (7) in relation to any adjustment shall be liable to

a penalty of an amount not exceeding the amount by which the credit allowed has been rendered excessive by reason of the adjustment.

Text as made, from legislation.gov.uk. © Crown copyright, reused under the Open Government Licence v3.0. This is the text as originally made; later amendments are not shown here.

Who it binds, and what has to be proved

Binds
a person
Conduct
failing to comply with a notice or direction
Fault element
Strict liability
Burden of proof
No statutory defence — prosecution proves everything

The prosecution must prove that the conduct happened. This is a strict liability offence as drafted: the provision uses no word of intention, knowledge, recklessness or negligence, so there is no need to show that a person meant to do it, knew about it, or was careless.

Intention, knowledge and carelessness are irrelevant to guilt. They may still matter a great deal to sentence.

The provision states no defence, so the prosecution bears the burden on every element of the offence.

Classifier’s reasoning: no word of intention, knowledge, recklessness or negligence in the offence or its provision.

What would breach regulation 10(8)?

These are illustrations, not law. They are generated from the provision’s own words to show the shape of the offence. Whether any particular conduct is caught depends on the full text, on any amendment since, and on the facts.

  1. Being served with a notice under the Lloyd’s Underwriters (Double Taxation Relief) (Corporate Members) Regulations 2006 and doing nothing by the date it specifies.
  2. Doing part of what the notice requires, where it required all of it.
  3. Disagreeing with the notice and ignoring it, rather than using whatever appeal the instrument provides.

Penalty

Mode of trial
Not determined
Maximum fine
Not determined
Maximum prison (summary)
Not determined

no penalty is stated in this instrument; it may be in the enabling Act, or in a general penalties provision this pass did not connect to the offence.

No penalty was determined from this instrument. It may be in the enabling Act, or in a general penalties provision this pass did not connect to the offence. Absence of a figure here is not evidence that the offence carries no penalty.

Sentencing

Offences of this kind are usually sentenced under the guidelines below. This is a mapping by subject, not a finding about this provision, and the links go to a search of the Sentencing Council’s own site.

Prosecution figures

No published per-offence figure was found for this provision, and it could not be matched to a Ministry of Justice offence code. Offences created by statutory instrument very largely do not have one. Absence of a figure is not evidence that the offence is unused.

Status and lifecycle

Current status
Status not determined
Made
6 December 2006
In force from
31 December 2006
Extent
Not stated

How this was established: read from the text as made; no revised version available, so later revocation could not be ruled out.

What the instrument is for

(This note is not part of the Regulations) — the explanatory note published with the instrument, © Crown copyright.

These Regulations make provision for double taxation relief in respect of the profits or losses arising from the underwriting business carried on by a corporate member of Lloyd’s. Regulations 1 and 2 deal with preliminary matters. Regulation 1 provides for citation, commencement and effect, and regulation 2 for interpretation. Regulations 3 and 4 deal with general matters. Regulation 3 contains general provisions, and states the principle that relief from United Kingdom corporation tax shall be given under Chapters 1 and 2 of Part 18 of the Income and Corporation Taxes Act 1988 (c. 1) in respect of the foreign tax payable by allowing the amount of the pool of adjusted sums of foreign tax for an accounting period as a credit against the United Kingdom corporation tax payable on the profits arising from the corporate member’s underwriting business. Regulation 4 provides for certain sections of Chapter 2 of Part 18 of the Income and Corporation Taxes Act 1988 to apply for the purposes of these Regulations. Regulations 5 to 10 apply to determine how the amount of the pool of adjusted sums of foreign tax for an accounting period is ascertained. Regulation 5 provides that the amount of the pool of adjusted sums of foreign tax for an accounting period is calculated by reference to the foreign tax payable for the corresponding foreign period of accounting; and that an accounting period corresponds to a foreign period of accounting if the foreign period of accounting ends in the period of twelve months immediately preceding the beginning of the accounting period. An amount of foreign tax payable for a corresponding foreign period of accounting is called a foreign amount of tax. Regulation 6 contains further provisions that apply if an accounting period or a foreign period of accounting is not a period of twelve months. Regulation 7 provides for foreign amounts of tax to be adjusted in certain circumstances to determine the adjusted sums of foreign tax. Regulation 8 sets out how the calculation of the amount of the pool of adjusted sums of foreign tax is made. Regulation 9 contains transitional provisions; and regulation 10 contains provisions that apply if there is a refund of foreign tax. Regulation 11 explains how the amount of the pool of adjusted sums of foreign tax for an accounting period is allowed as a credit against the United Kingdom corporation tax payable on the profits arising from the corporate member’s underwriting business. A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

Read the full note and every offence in this instrument

How this was identified as an offence

Everything above rests on the judgement that this provision creates a criminal offence, rather than mentioning one. That judgement is made by rule, from the words of the provision, and this is the rule that made it — with a confidence of 0.68.

Basis
the provision states a penalty in older drafting
Confidence
0.68 of 1.00

A provision that states a penalty for an offence created elsewhere can read very like one that creates an offence, and the rules can mistake the one for the other. If the text quoted above sets a penalty for something made an offence by another provision, treat the classification on this page with that in mind, and read the instrument.

Check the source