Taxation (International and Other Provisions) Act 2010

General provisions about deduction notices and receipt notices

255 Notices given before tax return made

(1) This section applies if an officer of Revenue and Customs gives a company a deduction notice or a receipt notice before the company has made its company tax return for the accounting period specified in the notice.

(2) If the company makes that return before the end of the period of 90 days beginning with the day on which the notice is given, it may—

(a) make a return that disregards the notice, and

(b) at any time after making the return and before the end of that 90 day period, amend the return for the purpose of complying with the provision referred to in the notice.

(3) Subsection (2)(b) does not prevent a company tax return for a period becoming incorrect if—

(a) a deduction notice or a receipt notice is given to the company in relation to that period,

(b) the return is not amended in accordance with subsection (2)(b) for the purpose of complying with the provision referred to in the notice, and

(c) it ought to have been so amended.

256 Notices given after tax return made

(1) If a company has made a company tax return for an accounting period, an officer of Revenue and Customs may only give the company a deduction notice or a receipt notice if a notice of enquiry has been given to the company in respect of the return.

(2) After any enquiries into the return have been completed, an officer of Revenue and Customs may only give the company a deduction notice or a receipt notice if conditions A and B are met.

(3) Condition A is that the officer could not have been reasonably expected to have been aware that the circumstances were such that a deduction notice or a receipt notice could have been given to the company in relation to the period.

(4) Whether condition A is met must be determined on the basis of information made available to the Commissioners for Her Majesty’s Revenue and Customs or an officer of Revenue and Customs before the time the enquiries into the return were completed.

(5) Paragraph 44(2) and (3) of Schedule 18 to FA 1998 (information made available) applies for the purposes of subsection (4) as it applies for the purposes of paragraph 44(1) of that Schedule.

(6) Condition B is that—

(a) the company was requested to provide information during an enquiry into the return, and

(b) if the company had duly complied with the request, an officer of Revenue and Customs could reasonably have been expected to give the company a deduction notice or a receipt notice in relation to the period.

257 Amendments, closure notices and discovery assessments where section 256 applies

(1) Subsection (2) applies if, after having made a company tax return for an accounting period, a company is given a deduction notice or a receipt notice in relation to the period (“the Part 6 notice”).

(2) The company may amend the return for the purpose of complying with the provision referred to in the Part 6 notice at any time before the end of the period of 90 days beginning with the day on which the Part 6 notice is given (“the 90 day period”).

(3) Subsection (4) applies if the Part 6 notice is given to the company after it has been given a notice of enquiry in respect of the return.

(4) No closure notice may be given in relation to the return until—

(a) the end of the 90 day period, or

(b) the earlier amendment of the return for the purpose of complying with the provision referred to in the Part 6 notice.

(5) Subsection (6) applies if the Part 6 notice is given to the company after any enquiries into the return are completed.

(6) No discovery assessment may be made in respect of the income or chargeable gain to which the Part 6 notice relates until—

(a) the end of the 90 day period, or

(b) the earlier amendment of the return for the purpose of complying with the provision referred to in the Part 6 notice.

(7) Subsection (2) does not prevent a return for an accounting period becoming incorrect if—

(a) a deduction notice or receipt notice is given to the company in relation to the period,

(b) the return is not amended in accordance with subsection (2) for the purpose of complying with the provision referred to in the notice, and

(c) it ought to have been so amended.