F1SCHEDULE 43AProcedural requirements: pooling notices and notices of binding
Notice of proposal to bind arrangements to counteracted arrangements
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(1)
This paragraph applies where a counteraction notice has been given to a person in relation to any tax arrangements (the “counteracted arrangements”) which are in a pool created under paragraph 1.
(2)
If a designated HMRC officer considers—
(a)
that a tax advantage has arisen to another person (“R”) from tax arrangements that are abusive,
(b)
that those tax arrangements (“R's arrangements”) are equivalent to the counteracted arrangements, and
(c)
that the advantage ought to be counteracted under section 209,
the officer may give R a notice (a “notice of binding”) in relation to R's arrangements.
(3)
The officer may not give R a notice of binding if R has been given in respect of R's arrangements a notice under—
(a)
paragraph 1, or
(b)
paragraph 3 of Schedule 43.
(4)
In this paragraph “counteraction notice” means a notice such as is mentioned in sub-paragraph (2) of paragraph 12 of Schedule 43 or sub-paragraph (3) of paragraph 8 of Schedule 43B (notice of final decision to counteract).
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(1)
The decision whether or not to give R a pooling notice or notice of binding must be taken, and any notice must be given, as soon as is reasonably practicable after HMRC becomes aware of the relevant facts.
(2)
A pooling notice or notice of binding must—
(a)
specify the tax arrangements in relation to which the notice is given and the tax advantage,
(b)
explain why the officer considers R's arrangements to be equivalent to the lead arrangements or the counteracted arrangements (as the case may be),
(c)
explain why the officer considers that a tax advantage has arisen to R from tax arrangements that are abusive,
(d)
set out the counteraction that the officer considers ought to be taken, and
(e)
explain the effect of—
(i)
paragraphs 4 to 10,
(ii)
subsection (9) of section 209, and
(iii)
section 212A.
(3)
A pooling notice or notice of binding may set out steps that R may (subject to subsection (9) of section 209) take to avoid the proposed counteraction.