Further to my blogs on the Nationwide I called HMRC and asked if they were requesting data from people like Nationwide from their offshore subsidiaries. I was told:
The information that has to be provided is set out in the notice. Notices were sent out to the financial institutions affected last week.
The law states that any information notice only requires a person to produce a document if it is in the person's possession or power. This is legal terminology which has been the subject of clarification in the courts but depending on the particular arrangements in a financial institution, it can mean that they have to provide information from offshore associates.
The ruling is not published yet.
I gather the ruling will be published in about four weeks.
But note the important point — which I will be returning to —that the power to acquire is what is important. And if, as I suggest, Nationwide seems to say its Isle of Man subsidiary is managed centrally as one unit with the UK then it must have the power to acquire the data.
I think IFRS 8 is about to become HMRC’s best friend.
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There’s a copy of HMRC’s letter to the banks on the TaxBuzz blog if it’s of interest Richard.
What is the ruling not yet published that you are referring to? A ruling about what? A ruling from who?
The ruling is from what is called the First Tier Tribunal – what used to to be called the General Commissioners
It says the banks must disclose information referred to in the letter to which I have linked elsewhere
The ruling is not yet in the public domain but will be soon
I thought this ruling had already been made? The media said some time ago that about 300 banks had been told to disclose the information. Do you mean that the ruling has just not been made officially public yet?
Yes