SCHEDULES

SCHEDULE 19Large businesses: tax strategies and sanctions

PART 3Sanctions for persistently unco-operative large businesses

Warning notices

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1

A designated HMRC officer may give the head of a UK group a notice under this paragraph (a “warning notice”) if the officer considers that the group is a qualifying group that falls within this Part.

2

The notice must set out the reasons why the officer considers that the group falls within this Part.

3

The notice—

a

may be withdrawn by a designated HMRC officer at any time by giving a further notice to the head of the group, and

b

expires (if not previously withdrawn) at the end of the period of 15 months beginning with the day on which it was given.

4

Once a warning notice has been given —

a

it is immaterial for the purposes of this Part whether the group remains a qualifying group,

b

the identity of the group is not to be regarded as altered by any change in its membership resulting from a relevant body—

i

becoming a 51% subsidiary of a member of the group, or

ii

ceasing to be a 51% subsidiary of another member of the group; and

c

if the group becomes a UK sub-group of a foreign group it is to be treated as if it were still a UK group.

5

Sub-paragraph (4) applies while the group is subject to—

a

the warning notice, or

b

any other notice under this Part issued as a result of the group having been given the warning notice.