SCHEDULES

SCHEDULE 19Large businesses: tax strategies and sanctions

PART 3Sanctions for persistently unco-operative large businesses

Special measures notices

45

1

This paragraph applies in relation to a UK group where—

a

the head of the group has been given a warning notice or a special measures notice in relation to the group, and

b

that notice has expired.

2

A designated HMRC officer may give the head of a UK group a special measures notice if—

a

it appears to the officer that—

i

during the period of 6 months beginning with the day on which the notice mentioned in sub-paragraph (1)(a) expired (“the expiry day”), the group has engaged in unco-operative behaviour (see paragraphs 36 to 38), and

ii

there is a reasonable likelihood that, if it had engaged in the behaviour before the notice expired, a designated HMRC officer would have considered that the group fell within this Part (so that a special measures notice or confirmation notice could have been given to the head of the group),

b

during the period of 7 months beginning with the expiry day, a designated HMRC officer has notified the head of the group that the power under this paragraph may be exercised in relation to the group, and

c

the period of 9 months beginning with that day has not elapsed.

3

When deciding whether to give a special measures notice under this paragraph, the officer must consider any representations made by a member of the group before the end of the period of 8 months beginning with the expiry day.