D1.1326 Additional tax administrative responsibilities for major corporates
For the latest New Development, see ND.1646.
Major corporates have additional administrative responsibilities and are required to appoint a senior accounting officer. They are also required to publish their tax strategy. In addition, large businesses are also subject to a business risk review.
Senior accounting officers
There is a statutory requirement for senior accounting officers (SAOs) of major corporates to certify personally that they have taken reasonable steps to ensure that the company (and its subsidiaries, if any) has established, and maintains, adequate tax accounting arrangements to enable it to make accurate tax returns1. Penalties may be imposed on both SAOs and companies who fail to comply with these requirements2. For HMRC guidance see HMRC's Senior Accounting Officer Manual3.
The measures apply only to a large UK-registered company that in the preceding financial year, either alone or when its results are aggregated with other UK companies in the same group, has4:
• a turnover of £200m, or
• a balance sheet total of more than £2bn
Dormant companies within a group which meet the above criteria must also feature in the report made to HMRC.
LLPs are not affected by this legislation.
The main duty of an SAO of a qualifying company is to take reasonable steps to ensure that the company establishes and maintains appropriate tax accounting arrangements5. In particular, the SAO must monitor the arrangements and identify those that