Finance (No. 2) Act 2023

Part 7 Determinations where self-assessment return not submitted

24 This Part of this Schedule applies if the filing member of a multinational group has not submitted a self-assessment return under paragraph 13 for an accounting period.

25 (1) An officer of Revenue and Customs may make a determination if—

(a) the group is not a registered group and the officer has reasonable grounds to believe the group should be, or

(b) the officer has reasonable grounds to believe the filing member should have submitted a self-assessment return.

(2) A “determination” is a determination by the officer to the best of the officer’s knowledge and belief as to the total amount of tax payable by a member of the group for the accounting period.

(3) The officer must give notice of the determination to the filing member.

(4) The notice must state the date on which it was issued.

(5) No determination may be made—

(a) on or before the last date on which the return was required to be submitted or would have been so required had the group been a registered group;

(b) more than 3 years after that date.

26 (1) If, after a determination has been made—

(a) a self-assessment return is submitted for the accounting period, and

(b) an information return or overseas return notification has been submitted for that period,

the assessment in the self-assessment return supersedes the assessment in the determination.

(2) Sub-paragraph (1) does not apply to a self-assessment return delivered after the later of—

(a) the day 3 years after the day on which the power to make the determination first became exercisable, and

(b) the day 12 months after the date of the determination.

(3) Where—

(a) proceedings have begun for the recovery of any tax assessed in a determination, and

(b) before the proceedings are concluded the determination is superseded under sub-paragraph (1),

the proceedings may be continued as if they were proceedings for the recovery of so much of the tax assessed in the self-assessment return as is due and payable and has not been paid.

(4) Where—

(a) action is being taken under Part 1 of Schedule 8 to the F(No.2)A 2015 (enforcement of deduction from accounts) for the recovery of an amount (“the original amount”) of tax assessed in a determination, and

(b) before that action is concluded the determination is superseded under sub-paragraph (1),

that action may be continued as if it were an action for the recovery of so much of the tax assessed in the return as is due and payable, has not been paid and does not exceed the original amount.