Explanatory note

This Order appoints 1 April 2013 as the date on which Schedule 38 to the Finance Act 2012^f1 comes into force.

Schedule 38 makes provision enabling HM Revenue and Customs (“HMRC”) to issue a tax agent with a conduct notice if it has determined that they have engaged in dishonest conduct, to obtain working papers from them, and impose penalties. Where an individual incurs a penalty in relation to dishonest conduct which exceeds £5,000, the Schedule provides that the Commissioners for HMRC may publish certain information about this individual.

Schedule 38 repeals the previous powers to call for papers from a tax accountant under section 20A of the Taxes Management Act 1970^f2. Article 3 of this Order preserves section 20A and related provisions in relation to notices issued under section 20A prior to the 1 April 2013.

A Tax Information and Impact Note (“TIIN”) has not been prepared for this instrument as it gives effect to previously announced policy and it is an appointed day order. A TIIN covering Schedule 38 was published on 6 December 2011 and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm . It remains an accurate summary of the impacts that apply to the Schedule.