SCHEDULE 34Promoters of tax avoidance schemes: threshold conditions

PART 2Meeting the threshold conditions: bodies corporate

13(1)Sub-paragraph (2) applies where—

(a)a relevant threshold condition is met by a person (“P”) at a time (“the earlier time”) when P has control of a body corporate,

(b)a determination under section 237 is made at a later time in relation to the body corporate, and

(c)P has control of the body corporate at the time of the determination.

(2)The body corporate is regarded as having met the threshold condition at the earlier time.

(3)“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 by professional body);

(f)paragraph 9 (disciplinary action by regulatory authority);

(g)paragraph 10 (failure to comply with information notice).

(4)For the purposes of this paragraph a person (“P”) has control of a body corporate (“B”) if P has power to secure—

(a)by means of the holding of shares or the possession of voting power in relation to B or any other body corporate, or

(b)as a result of any powers conferred by the articles of association or other document regulating B or any other body corporate,

that the affairs of B are conducted in accordance with P’s wishes.