The Machine Games Duty Regulations 2012

PART 5 APPLICATION OF THE SCHEDULE TO GROUPS

General provisions

18.—(1) Any application made under this Part must be made in the manner prescribed.

(2) If there is any change or inaccuracy in the information—

(a) contained in an application under this Part; or

(b) subsequently notified to the Commissioners in accordance with this Part,

the applicant must notify the Commissioners in writing within seven business days of becoming aware of it.

(3) The Commissioners may require the applicant to provide the information (or any part of the information) listed in Schedule 1 in respect of each of the bodies corporate that are the subject of the application.

(4) The Commissioners may require the applicant to make a declaration that the information is true and complete.

(5) The Commissioners may refuse any application under this Part if it appears necessary to do so for the protection of the revenue.

(6) A date specified in a notice under this Part must be a date which is at least four business days after the date on which the notice is sent.

(7) If group membership is terminated for any reason not intended by the Commissioners, the Commissioners may reinstate the membership with effect from—

(a) the date that the membership was terminated; or

(b) such other date as may be agreed with the representative member.

Eligibility to form a group for MGD

19.—(1) Two or more bodies corporate (who are registrable persons) are eligible to apply to the Commissioners to be treated as members of a group for the purposes of MGD if—

(a) one of them controls each of the others;

(b) one person (whether a body corporate or an individual) controls all of them; or

(c) two or more individuals carrying on a business in partnership control all of them.

(2) For the purposes of this Part, a body corporate is to be taken to control another body corporate if—

(a) it is empowered by statute to control that body’s activities; or

(b) it is that body’s holding company within the meaning of section 1159 of the Companies Act 2006(1),

and an individual or individuals is to be taken to control a body corporate if (were that individual or those individuals a company) that individual or those individuals would be that body’s holding company within the meaning of that Act.

Application to form a group

20.—(1) For the purposes of regulation 19, the applicant must satisfy the Commissioners that the bodies corporate which are the subject of the application have consented to group treatment.

(2) The application must specify which one of bodies corporate that are the subject of the application will be the representative member.

(3) If the Commissioners accept the application, they must notify the representative member of the group of the date on which group treatment will commence.

(4) If the Commissioners refuse the application, they must notify the applicant and all of the bodies corporate who are the subject of the application.

(5) The Commissioners may require the representative member to provide security for the payment of MGD in accordance with regulation 11(1)(a), but of an amount which the Commissioners consider to be appropriate for the group.

Effect of group membership

21.—(1) Where under this Part any bodies corporate are treated as members of a group, any business carried on by the group is to be treated as carried on by the representative member.

(2) A reference to an RP in regulations 12 and 13 must be read for the purposes of this Part as though it is a reference to the representative member.

(3) All members of the group are jointly and severally liable for any MGD due from the representative member.

(4) A body corporate may not be treated as a member of more than one group at the same time.

Applications by a representative member

22.—(1) Subject to paragraph (5), this regulation applies where two or more bodies corporate are treated as members of a group and the representative member makes an application to the Commissioners—

(a) for another body corporate (which is eligible under this Part) to be treated as a member of the group;

(b) for a body corporate to cease to be treated as a member of the group;

(c) for the bodies corporate no longer to be treated as members of a group; or

(d) for another member to be substituted as the group’s representative member.

(2) In respect of an application under paragraph (1)(a), the representative member must satisfy the Commissioners that—

(a) the existing members of the group; and

(b) any registrable person who is the subject of the application,

have consented to group treatment.

(3) A body corporate is to be treated as a member of the group only—

(a) if the application is accepted by the Commissioners; and

(b) from a date notified by the Commissioners to the representative member.

(4) In respect of an application under paragraph (1)(b) or (1)(c), a body corporate is to be treated as not being a member of the group only—

(a) if the application is accepted by the Commissioners; and

(b) from a date notified by the Commissioners to the representative member and any body corporate which is the subject of the application.

(5) An application under paragraph (1)(d) may be made by—

(a) the current representative member; or

(b) the body corporate that is applying to be substituted for the current representative member, and

the applicant must satisfy the Commissioners that the members of the group have consented to the substitution.

(6) In respect of an application under paragraph (1)(d), another member of the group is only to substituted as the representative member—

(a) if the application is accepted by the Commissioners; and

(b) from a date that the Commissioners are satisfied has been notified to all of the members of the group.

Applications by group members other than the representative member

23.—(1) A body corporate may apply to the Commissioners to—

(a) transfer from its current group to a different group; or

(b) cease to be treated as a member of a group.

(2) The Commissioners must be satisfied that the body corporate has given notice of the application to the representative member of the current group and the group it is applying to join.

(3) A body corporate is to be treated as not being a member of the group by virtue of this regulation only—

(a) if the application is accepted by the Commissioners; and

(b) from a date notified by the Commissioners to the representative member and the body corporate who made the application.

Termination of group membership by the Commissioners

24.—(1) The Commissioners may, by notice given to a body corporate, terminate its treatment as a member of a group from a date which is specified in the notice.

(2) The Commissioners may give a notice under paragraph (1) if it appears to them—

(a) to be necessary for the protection of the revenue; or

(b) that the body corporate is not (or is no longer) eligible to be treated as a member of the group.

(3) Any notice to be given under this regulation must be given in writing and sent by post to the last or usual place of business of the body corporate.

(4) Where the Commissioners give notice to a body corporate under paragraph (1), notice must also be given to the representative member (if different from the body corporate).

(5) If the body corporate referred to in paragraph (1) is the representative member—

(a) notice must also be given to each member of the group; and

(b) the members of the group must with immediate effect appoint a new representative member in order to continue to be treated as a group.

(6) If it appears to the Commissioners that—

(a) the group does not (or has ceased to) have a representative member who is acceptable to the Commissioners; or

(b) there are less than two bodies corporate being treated as members of the group,

they may give notice to each member that the group treatment will cease from the time specified in the notice.

(1)

2006 c. 46.