F1SCHEDULE 7AInterest restriction returns
PART 5Determinations by officers of Revenue and Customs
Power of Revenue and Customs to make determinations where no return filed etc
56
(1)
This paragraph applies where—
(a)
an officer of Revenue and Customs considers that a worldwide group was subject to interest restrictions in a period of account of the group (“the relevant period of account”),
(b)
the determination date has passed, and
(c)
condition A, B or C is met.
(2)
In this paragraph “the determination date”, in relation to a period of account of a worldwide group, means—
(a)
where the appointment of a reporting company has effect in relation to the period of account, the filing date in relation to the period (see paragraph 7(5));
(b)
otherwise, the end of the period of 12 months beginning with the end of the period of account.
(3)
Condition A is that no appointment of a reporting company has effect in relation to the relevant period of account.
(4)
Condition B is that—
(a)
the appointment of a reporting company has effect in relation to the relevant period of account, and
(b)
no interest restriction return has been submitted for the period.
(5)
Condition C is that—
(a)
the appointment of a reporting company has effect in relation to the relevant period of account,
(b)
an interest restriction return has been submitted for the period, and
(c)
the return does not comply with the requirements of paragraph 20(3) (for example by including inaccurate figures).
(6)
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 relevant period of account, and
(b)
in relation to each relevant accounting period of the company, the accounting period's pro-rata share of the total disallowed amount.
(7)
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.
(8)
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.
(9)
No determination under this paragraph may be made after the end of the period of 3 years beginning with the determination date.