PART 3

Diverted profits tax

Process for imposing charge

Charging notice
95
1
This section applies where a designated HMRC officer has given a company a preliminary notice under section 93 in relation to an accounting period.
2
Having considered any representations in accordance with section 94, the officer must determine whether to—
a
issue a notice under this section (a “charging notice”) to the company for that accounting period, or
b
notify the company that no charging notice will be issued for that accounting period pursuant to that preliminary notice,
and must take that action before the end of the period of 30 days immediately following the period of 30 days mentioned in section 94(2).
3
A notification under subsection (2)(b) does not prevent a charging notice being issued for the same accounting period pursuant to any other preliminary notice the person may be given in respect of that period.
4
See sections 96 and 97 for provision about the calculation of taxable diverted profits for the purposes of a charging notice.
5
A charging notice must—
a
state the amount of the charge to diverted profits tax imposed by the notice;
b
set out the basis on which the officer considers that section 80, 81 or 86 applies;
c
state the accounting period of the company to which the notice applies;
d
set out an explanation of the basis on which the charge is calculated, including—
i
how the taxable diverted profits to which the charge relates have been determined,
ii
where relevant, details of the relevant alternative provision (see section 82(5) or 88(7)) by reference to which those profits have been determined, and
iii
how the amount of interest comprised in the charge under section 79(2)(b) has been calculated;
e
state who is liable to pay the diverted profits tax;
f
state when the tax is due and payable;
g
explain how interest is applied in accordance with section 101 of FA 2009 (late payment interest on sums due to HMRC) if the diverted profits tax is not paid, the period for which interest is charged and the rate at which it is charged.
6
Where a charging notice is issued to a company, the officer must give a copy of the notice—
a
if the notice is issued by reason of section 81 applying, to UKPE, and
b
if the notice is issued by reason of section 86 applying, to the avoided PE.