Part 15Transactions in securities
Procedure for counteraction of corporation tax advantages
746Counteraction notices
1
If—
a
a company on which a notification is served under section 743 does not send a statutory declaration to an officer of Revenue and Customs under section 744 within 30 days of the issue of the notification, or
b
the tribunal to which such a declaration is sent under section 745 determines that there is a prima facie case for serving a notice on a company under this section,
the corporation tax advantage in question is to be counteracted by adjustments.
2
The adjustments required to be made to counteract the corporation tax advantage and the basis on which they are to be made are to be specified in a notice served on the company by an officer of Revenue and Customs.
3
In this Part such a notice is referred to as a “counteraction notice”.
4
Any of the following adjustments may be specified—
a
an assessment,
b
the nullifying of a right to repayment,
c
the requiring of the return of a repayment already made, or
d
the calculation or recalculation of profits or gains or liability to corporation tax.
5
Nothing in this section authorises the making of an assessment later than 6 years after the accounting period to which the corporation tax advantage relates.
6
This section is subject to—
section 747 (timing of assessments in section 738 cases), and
section 749(2) (effect of clearance notification under section 748).
7
But no other provision in the Corporation Tax Acts is to be read as limiting the powers conferred by this section.