SCHEDULES

SCHEDULE 19Large businesses: tax strategies and sanctions

PART 3Sanctions for persistently unco-operative large businesses

Application of Part 3 to large partnerships

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1

A UK partnership falls within this Part if—

a

the partnership has persistently engaged in unco-operative behaviour (see paragraphs 36 to 38),

b

some or all of the unco-operative behaviour has caused there to be, or contributed to there being, two or more significant tax issues in respect of the partnership which are unresolved (see paragraph 39), and

c

there is a reasonable likelihood of further instances of the partnership engaging in unco-operative behaviour in a manner which causes there to be, or contributes to there being, significant tax issues in respect of the partnership.

2

Paragraphs 36 to 39 of this Schedule apply in relation to a UK partnership as they apply in relation to a UK group.

3

Paragraphs 41 to 45 of this Schedule apply in relation to the representative partner of a UK partnership as they apply in relation to the head of a UK group.

4

As applied by this paragraph, paragraphs 36 to 39 and 41 to 45 have effect as if—

a

references to a UK group were references to a UK partnership;

b

references to the head of a UK group were references to the representative partner of a UK partnership;

c

references to a member of a UK group were references to a partner of a UK partnership, acting in the person's capacity as such.

5

The Treasury may by regulations make provision for warning notices, special measures notices and confirmation notices to be treated as having been given to the representative partner of a UK partnership in circumstances described in the regulations.

6

Paragraph 46(12) applies to regulations under this paragraph.

7

Paragraph 47 applies in relation to an inaccuracy in a document given to HMRC by a partner of a UK partnership, acting in the person's capacity as such, as if—

a

references to a group were references to a partnership;

b

references to the head of a group were references to the representative partner of a partnership;

c

references to a member of a group were references to a partner of a partnership.

8

Paragraph 47 applies in relation to an inaccuracy in any other document given to HMRC on behalf of a UK partnership as if—

a

references to a person included a UK partnership;

b

references to a group, or a member of a group, were references to a UK partnership;

c

references to the head of a group were references to the representative partner of a UK partnership.

9

Paragraph 49 applies in relation to a UK partnership as it applies in relation to a group.

10

As applied by this paragraph, paragraph 49 has effect as if—

a

references to a group were references to a UK partnership;

b

references to the head of a group were references to the representative partner of a UK partnership.