Commentary on Sections Disclosure of avoidance Section 7 – Disclosure of contributions avoidance arrangements
62.Subsections (1) and (2) of the section provide for a new section 132A – Disclosure of contributions avoidance arrangements, to be inserted into the SSAA 1992.
63.Subsection (1) of section 132A provides that the Treasury may make regulations requiring, or relating to, the disclosure of information in relation to “notifiable contribution arrangements” or “notifiable contribution proposals”.
64.Subsection (2) restricts the scope of the power provided by subsection (1). The regulations can only apply in relation to NICs (with or without modification), or make provision corresponding to, those provisions in primary or secondary legislation relating to the disclosure of information in relation to income tax avoidance arrangements, including provisions that come into force on or after the day the Act received Royal Assent (30 March 2006).
65.Subsection (3) defines “notifiable contribution arrangements” and “notifiable contribution proposal”. In essence, these are arrangements, or proposals for arrangements, whose use might be expected to obtain a NICs advantage as one of the main benefits of using those arrangements.
66.Subsection (4) provides a power enabling the Treasury to amend subsection (3) by regulations if, after the passing of this Act, any of the provisions relating the disclosure of income tax avoidance arrangements are amended in such a way that the definitions in subsection (3) no longer mirror the relevant tax provisions. The scope of the power is limited to amending the definitions in subsection (3) to make provision analogous to the changes to the relevant tax provisions.
67.Subsection (5) defines some of the terms used in subsection (4).
68.Subsection (6) ensures that regulations made under section 132A cannot require any person to disclose information which is protected by legal professional privilege. This provision mirrors the equivalent provision applying to the disclosure of information in relation to income tax arrangements (section 314 of the Finance Act 2004).
69.Subsection (7) contains definitions of “advantage”, “arrangements”, “contribution” and “tax avoidance arrangements”.
70.Subsection (3) of the section inserts a reference to subsection (4) of the new section 132A of the SSAA 1992 into section 190(1) of the SSAA 1992. This provides that if regulations are made using the powers under section s132A a draft of the instrument has to be laid before Parliament and approved by a resolution from both the House of Commons and the House of Lords before the instrument is made.
71.Subsection (4) of the section ensures that the new section 132A extends to Northern Ireland as well as Great Britain.