The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Following a period of consultation on ‘Improving Large Business Tax Compliance’ during 2015, Finance Act 2016, s 161 and Sch 19, Part 3 introduce a regime to counter persistently uncooperative behaviour from large businesses.
The rules apply to large UK groups but are also extended to include large UK sub-groups, large companies and large partnerships by FA 2106, Sch 19, paras 50–52. For the sake of brevity, this guidance note mainly refers to the rules in the context of large UK groups.
The Government hopes that a targeted ‘special measures’ regime will tackle those large businesses who persistently pursue aggressive tax planning or refuse to engage in an open and collaborative way with HMRC. In parallel, there is now a legislative requirement for large businesses to publish their tax strategy, see the Publication of tax strategies by large businesses guidance note for the detailed provisions enacted in this area.
A UK group falls within the new rules if it has persistently engaged in uncooperative behaviour which has contributed to or caused two or more unresolved and significant tax issues, and there is a reasonable likelihood of further instances of such behaviour by the group or its members. Definitions of these terms and the sanctions available to HMRC where these attributes are present, are set out below.
FA 2016, Sch 19, Part 1 contains a list of definitions which are relevant to both the legislation related to the ‘Publication of tax strategies’ and ‘Sanctions for persistently uncooperative large businesses’ contained in FA 2016, Sch 19, Parts 2 and 3. See the Publication of tax strategies by large businesses guidance note for further details.
It would appear at first sight from the drafting of the key operative provision in FA 2016, Sch 19, para 35 that the
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login