SCHEDULES

SCHEDULE 19Large businesses: tax strategies and sanctions

PART 2Publication of tax strategies

Penalty for non-compliance with paragraph 16

18

1

This paragraph applies where paragraph 16 requires a group tax strategy to be published for a UK group in any financial year of the head of the UK group.

2

The head of the group is liable to a penalty of £7,500 if—

a

there is a failure to publish a group tax strategy for the group that complies with paragraph 16(2), or

b

where a group tax strategy has been published, there is a failure to comply with paragraph 16(5).

3

Subject to sub-paragraph (5) the head of the group is only liable to one penalty by virtue of sub-paragraph (2) in respect of a group tax strategy required for the financial year in question.

4

Sub-paragraph (5) applies where—

a

the head of the group is liable to a penalty under this paragraph in respect of a failure mentioned in sub-paragraph (2)(a), and

b

no group tax strategy for the group that complies with paragraph 16(2) (disregarding paragraph 16(3)) is published within the period of 6 months after the last day on which the duty under paragraph 16(2) could have been complied with.

5

At the end of that period, the head of the group—

a

is liable to a further penalty of £7,500, and

b

where the failure mentioned in sub-paragraph (4)(b) continues, is liable to a further penalty of £7,500 at the end of each subsequent month in which no such group tax strategy is published.