Taxation (International and Other Provisions) Act 2010

[F1 Power of Revenue and Customs to make determinations following enquiry U.K.

Textual Amendments

F1 Sch. 7A inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 2 (with Sch. 5 para. 28)

58 (1) This paragraph applies where— U.K.

(a) as a result of a closure notice given under paragraph 47 (closure notice in respect of a return subject to enquiry), a company is required to submit an interest restriction return (“the return”) in relation to a worldwide group,

(b) the worldwide group is subject to interest restrictions in the return period, and

(c) condition A or B is met.

(2) Condition A is that the time limit in paragraph 50(2) for submission of the return has passed without the return being received by an officer of Revenue and Customs.

(3) Condition B is that—

(a) the return has been received by an officer of Revenue and Customs before the time limit in paragraph 50(2), and

(b) the officer considers that the return does not comply with the requirements of the closure notice.

(4) An officer of Revenue and Customs may determine, to the best of the officer's information and belief—

(a) a company's pro-rata share of the total disallowed amount of the group for the period of account in question, and

(b) in relation to each relevant accounting period of the company, the accounting period's pro-rata share of the total disallowed amount.

(5) If, as a result of the determination, an accounting period's pro-rata share of the total disallowed amount is not nil, the company must leave out of account tax-interest expense amounts in that period that, in total, equal that pro-rata share.

(6) A notice of determination under this paragraph must be given to the company, and to the reporting company, stating the date on which the determination is made.

(7) No determination under this paragraph may be made after the end of the period of 3 months beginning with the end of the period mentioned in paragraph 50(2).]