Taxation (International and Other Provisions) Act 2010

[F1 PART 5 U.K. Determinations by officers of Revenue and Customs

Textual Amendments

F1 Sch. 7A inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 2 (with Sch. 5 para. 28)

Power of Revenue and Customs to make determinations where no return filed etc U.K.

56 (1) This paragraph applies where— U.K.

(a) an officer of Revenue and Customs considers that a worldwide group was subject to interest restrictions in a period of account of the group (“the relevant period of account”),

(b) [F2 the filing date in relation to the relevant period of account has passed (see paragraph 7(5)),] and

(c) condition F3 ... B [F4 , C or D] is met.

F5 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Condition B is that—

(a) the appointment of a reporting company has effect in relation to the relevant period of account, and

(b) no interest restriction return has been submitted for the period.

(5) Condition C is that—

(a) the appointment of a reporting company has effect in relation to the relevant period of account,

(b) an interest restriction return has been submitted for the period, and

(c) the return does not comply with the requirements of paragraph 20(3) (for example by including inaccurate figures).

[F7 (5A) Condition D is that—

(a) the appointment of a reporting company has effect in relation to the relevant period of account,

(b) the reporting company is required to submit a revised interest restriction return for the period under paragraph 8(4), and

(c) the time limit in paragraph 8(5) for the submission of the revised return has passed without the revised return being received by an officer of Revenue and Customs.]

(6) An officer of Revenue and Customs may determine, to the best of the officer's information and belief—

(a) a company's pro-rata share of the total disallowed amount of the group for the relevant period of account, and

(b) in relation to each relevant accounting period of the company, the accounting period's pro-rata share of the total disallowed amount.

(7) If, as a result of the determination, an accounting period's pro-rata share of the total disallowed amount is not nil, the company must leave out of account tax-interest expense amounts in that period that, in total, equal that pro-rata share.

(8) A notice of determination under this paragraph must be given to the company, and to the reporting company, stating the date on which the determination is made.

(9) No determination under this paragraph may be made[F8 —

(a) in a case where Condition D is met, after the end of the period of 12 months beginning with the expiry of the time limit mentioned in paragraph 8(5), and

(b) in any other case,] after the end of the period of 3 years beginning with [F9 the filing date referred to in sub-paragraph (1)(b)].

Textual Amendments

F2 Sch. 7A para. 56(1)(b) substituted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 24(2)

F3 Word in Sch. 7A para. 56(1)(c) omitted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 24(3)(a)

F4 Words in Sch. 7A para. 56(1)(c) substituted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 24(3)(b)

F5 Sch. 7A para. 56(2) omitted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 24(4)

F6 Sch. 7A para. 56(3) omitted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 24(4)

F7 Sch. 7A para. 56(5A) inserted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 24(5)

F8 Sch. 7A para. 56(9)(a)(b) inserted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 24(6)(a)

F9 Words in Sch. 7A para. 56(9) substituted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 24(6)(b)

Time limit: interest restriction return following determination under paragraph 56 U.K.

57 (1) Sub-paragraph (2) applies where— U.K.

(a) a notice of determination under paragraph 56 is given to a company, and

(b) at the time the notice is given, no interest restriction return for the relevant period of account has been submitted under paragraph 7.

(2) Despite the passing of the time limit in paragraph 7(6), an interest restriction return for the relevant period of account submitted under paragraph 7 has effect if it is received before the end of the period of 12 months beginning with the date on which the notice is given.

(3) Sub-paragraph (4) applies where—

(a) a notice of determination under paragraph 56 is given to a company, and

(b) at the time the notice is given, an interest restriction return for the relevant period of account has been submitted under paragraph 7.

(4) Despite the passing of the time limit in paragraph 8(3), an interest restriction return for the relevant period of account submitted under paragraph 8 has effect if it is received before the end of the period of 12 months beginning with the date on which the notice is given.

(5) In this paragraph “the relevant period of account” means the period of account to which the determination in question relates.

Power of Revenue and Customs to make determinations following enquiry U.K.

58 (1) This paragraph applies where— U.K.

(a) as a result of a closure notice given under paragraph 47 (closure notice in respect of a return subject to enquiry), a company is required to submit an interest restriction return (“the return”) in relation to a worldwide group,

(b) the worldwide group is subject to interest restrictions in the return period, and

(c) condition A or B is met.

(2) Condition A is that the time limit in paragraph 50(2) for submission of the return has passed without the return being received by an officer of Revenue and Customs.

(3) Condition B is that—

(a) the return has been received by an officer of Revenue and Customs before the time limit in paragraph 50(2), and

(b) the officer considers that the return does not comply with the requirements of the closure notice.

(4) An officer of Revenue and Customs may determine, to the best of the officer's information and belief—

(a) a company's pro-rata share of the total disallowed amount of the group for the period of account in question, and

(b) in relation to each relevant accounting period of the company, the accounting period's pro-rata share of the total disallowed amount.

(5) If, as a result of the determination, an accounting period's pro-rata share of the total disallowed amount is not nil, the company must leave out of account tax-interest expense amounts in that period that, in total, equal that pro-rata share.

(6) A notice of determination under this paragraph must be given to the company, and to the reporting company, stating the date on which the determination is made.

(7) No determination under this paragraph may be made after the end of the period of 3 months beginning with the end of the period mentioned in paragraph 50(2).

Appeal against determination under paragraph 58 U.K.

59 (1) If a notice of determination under paragraph 58 is given to a company, the company may appeal against the notice. U.K.

(2) The only ground on which an appeal under this paragraph may be brought is that the determination is inconsistent with the requirements of the closure notice to which it relates.

(3) Notice of appeal under this paragraph must be given—

(a) within 30 days after the notice of determination was given to the company,

(b) to the officer of Revenue and Customs by whom the notice of determination was given.]