SCHEDULES
SCHEDULE 34Promoters of tax avoidance schemes: threshold conditions
PART 2Meeting the threshold conditions: bodies corporate F1and partnerships
F2Interpretation
Sch. 34 paras. 13A-13D substituted for Sch. 34 para. 13 (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 4(3)
13A
1
This paragraph contains definitions for the purposes of this Part of this Schedule.
2
Each of the following is a “relevant body”—
a
a body corporate, and
b
a partnership.
3
“Relevant time” means the time referred to in section 237(1A) (duty to give conduct notice to person treated as meeting threshold condition).
4
“Relevant threshold condition” means a threshold condition specified in any of the following paragraphs of this Schedule—
a
paragraph 2 (deliberate tax defaulters);
b
paragraph 4 (dishonest tax agents);
c
paragraph 6 (criminal offences);
d
paragraph 7 (opinion notice of GAAR advisory panel);
e
paragraph 8 (disciplinary action against a member of a trade or profession);
f
paragraph 9 (disciplinary action by regulatory authority);
g
paragraph 10 (failure to comply with information notice).
5
A person controls a body corporate if the person has power to secure that the affairs of the body corporate are conducted in accordance with the person's wishes—
a
by means of the holding of shares or the possession of voting power in relation to the body corporate or any other relevant body,
b
as a result of any powers conferred by the articles of association or other document regulating the body corporate or any other relevant body, or
c
by means of controlling a partnership.
F36
Two or more persons together control a body corporate if together they have the power to secure that the affairs of the body corporate are conducted in accordance with their wishes in any way specified in sub-paragraph (5)(a) to (c).
7
A person controls a partnership if the person is a member of the partnership and—
a
has the right to a share of more than half the assets, or more than half the income, of the partnership, or
b
directs, or is on a day-to-day level in control of, the management of the business of the partnership.
8
Two or more persons together control a partnership if they are members of the partnership and together they—
a
have the right to a share of more than half the assets, or of more than half the income, of the partnership, or
b
direct, or are on a day-to-day level in control of, the management of the business of the partnership.
9
Paragraph 19(2) to (5) of Schedule 36 (connected persons etc) applies to a person referred to in sub-paragraph (7) or (8) as if references to “P” were to that person.
10
A person has significant influence over a body corporate or partnership if the person—
a
does not control the body corporate or partnership, but
b
is able to, or actually does, exercise significant influence over it (whether or not as the result of a legal entitlement).
11
Two or more persons together have significant influence over a body corporate or partnership if together those persons—
a
do not control the body corporate or partnership, but
b
are able to, or actually do, exercise significant influence over it (whether or not as the result of a legal entitlement).
12
References to a person being a promoter are to the person carrying on business as a promoter.
Words in Sch. 34 heading inserted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 4(2)