SCHEDULES

SCHEDULE 16Penalties for enablers of defeated tax avoidance

PART 12General

Other definitions

56

1

In this Schedule—

  • “abusive tax arrangements” has the meaning given by paragraph 3;

  • “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

  • “business” includes any trade or profession;

  • “the Commissioners” means the Commissioners for Her Majesty‘s Revenue and Customs;

  • “company” has the same meaning as in the Corporation Tax Acts (see section 1121 of CTA 2010);

  • “contract settlement” (except in paragraph 46(6)) means an agreement in connection with a person's liability to make a payment to the Commissioners under or by virtue of an enactment;

  • “a defeat”, in relation to arrangements, is to be read in accordance with paragraph 4;

  • a “designated HMRC officer” means an officer of Revenue and Customs who has been designated by the Commissioners for the purposes of this Schedule;

  • “the GAAR Advisory Panel” has the meaning given by paragraph 1 of Schedule 43 to FA 2013;

  • “group” is to be read in accordance with sub-paragraph (2);

  • “HMRC” means Her Majesty's Revenue and Customs;

  • “national insurance contributions” means contributions under Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

  • a “NICs decision” means a decision under section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 or Article 7 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SI 1999/671) relating to a person‘s liability for relevant contributions;

  • “relevant contributions” means any of the following contributions under Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992—

    1. a

      Class 1 contributions;

    2. b

      Class 1A contributions;

    3. c

      Class 1B contributions;

    4. d

      Class 2 contributions which must be paid but in relation to which section 11A of the Act in question (application of certain provisions of the Income Tax Acts) does not apply;

  • “tax” is to be read in accordance with paragraph 54;

  • “tax advantage” is to be read in accordance with paragraph 55.

2

For the purposes of this Schedule two companies are members of the same group if—

a

one is a 75% subsidiary of the other, or

b

both are 75% subsidiaries of a third company;

and in this paragraph “75% subsidiary” has, subject to sub-paragraph (3), the meaning given by section 1154 of CTA 2010.

3

So far as relating to 75% subsidiaries, section 151(4) of CTA 2010 (requirements relating to beneficial ownership) applies for the purposes of this Schedule as it applies for the purposes of Part 5 of that Act.

4

In this Schedule references to an assessment to tax, however expressed—

a

in relation to inheritance tax and petroleum revenue tax, include a determination;

b

in relation to relevant contributions, include a NICs decision.