Source: http://www.legislation.gov.uk/ukpga/2016/24/schedule/19
Timestamp: 2019-09-15 17:30:50
Document Index: 644818484

Matched Legal Cases: ['ART 1', 'art 1', 'ART 2', 'ART 3', 'art 3', 'art 3', 'art 3', 'art 3']

Finance Act 2016, SCHEDULE 19 is up to date with all changes known to be in force on or before 15 September 2019. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Sch. 19 para. 52(3) words inserted by 2017 c. 32 Sch. 14 para. 48(3)(b)(i)
Sch. 19 para. 52(1) words substituted by 2017 c. 32 Sch. 14 para. 48(3)(a)
Sch. 19 para. 52(3) words substituted by 2017 c. 32 Sch. 14 para. 48(3)(b)(ii)
Sch. 19 para. 13(c) words substituted by 2017 c. 32 Sch. 14 para. 49(3)
SCHEDULE 19U.K.Large businesses: tax strategies and sanctions
PART 1 U.K.Interpretation
Purpose of Part 1U.K.
“Relevant body” U.K.
2(1)“Relevant body” means a UK company or any other body corporate (wherever incorporated), but does not include a limited liability partnership.U.K.
“UK company” U.K.
3(1)“UK company” means a company which is (or is treated as if it is) formed and registered under the Companies Act 2006, unless it falls within sub-paragraph (2).U.K.
“UK permanent establishment” U.K.
4(1)“UK permanent establishment” means a permanent establishment in the United Kingdom of a foreign relevant body.U.K.
“Qualifying company” U.K.
5(1)A UK company is a “qualifying company” in any financial year (subject to any regulations under sub-paragraph (5)) if sub-paragraph (2) or (3) applies to it.U.K.
1. The company's turnover More than £200 million
2. The company's balance sheet total More than £2 billion.
“Group” and related expressionsU.K.
6(1)“Group” means two or more relevant bodies which together constitute—U.K.
7(1)“MNE Group” has the same meaning (subject to sub-paragraph (2) below) as in the OECD Model Legislation in the OECD Country-by-Country Reporting Implementation Package as contained in the OECD's Guidance on Transfer Pricing Documentation and Country-by-Country Reporting published in 2014.U.K.
8(1)A “group other than an MNE group” means a group consisting of two or more relevant bodies—U.K.
“Qualifying group” U.K.
10(1)A group is a “qualifying group” in any financial year if, at the end of the previous financial year—U.K.
(4)Where the financial year of a UK company within in the group does not end on the same day as the previous financial year of the head of the group, the figures from the company that are to be included in the aggregate figures are those for the company's financial year ending last before the end of the previous financial year of the head of the group.
“UK sub-group” and “head” (in relation to a UK sub-group)U.K.
11(1)A “UK sub-group” consists of two or more relevant bodies that would be a UK group, but for the fact that they are members of a larger group headed by a relevant body incorporated outside the United Kingdom.U.K.
“UK partnership”, “qualifying partnership” and “representative partner”U.K.
12(1)“UK partnership” means a body of any of the following descriptions which is carrying on a trade, business or profession with a view to profit—U.K.
1. The partnership's turnover More than £200 million
2. The partnership's balance sheet total More than £2 billion.
“Financial year” U.K.
(b)in relation to any other relevant body, means any period in respect of which a profit and loss account for the body's undertaking is required to be made up (whether by its constitution or by the law under which it is established), whether that period is a year or not,
“Turnover” and “balance sheet total”U.K.
14(1)“Turnover”—U.K.
“UK taxation” U.K.
15(1)“UK taxation” means —U.K.
PART 2 U.K.Publication of tax strategies
Qualifying UK groups: duty to publish a group tax strategyU.K.
16(1)This paragraph applies in relation to a UK group which is a qualifying group in any financial year (“the current financial year”).U.K.
(a)if a group tax strategy for the group's next financial year is required by this paragraph to be published, until that tax strategy is published, or
Content of group tax strategyU.K.
17(1)A group tax strategy required to be published on behalf of a UK group by paragraph 16 must set out—U.K.
Penalty for non-compliance with paragraph 16U.K.
18(1)This paragraph applies where paragraph 16 requires a group tax strategy to be published for a UK group in any financial year of the head of the UK group.U.K.
UK sub-groups: duty to publish a sub-group tax strategyU.K.
19(1)This paragraph applies to a UK sub-group of a foreign group if in any financial year (“the current financial year”) the foreign group is a qualifying group.U.K.
(a)if a sub-group tax strategy for the sub-group's next financial year is required by this paragraph to be published, until that tax strategy is published, or
Content of a sub-group tax strategyU.K.
20(1)Paragraph 17 applies in relation to a sub-group tax strategy required to be published on behalf of a UK sub-group by paragraph 19 as it applies to a group tax strategy required to be published by a qualifying UK group.U.K.
Penalty for non-compliance with requirements of paragraph 19U.K.
21(1)This paragraph applies where paragraph 19 requires a sub-group tax strategy to be published for a UK sub-group in any financial year of the head of the sub-group.U.K.
Qualifying companies: duty to publish a company tax strategyU.K.
22(1)This paragraph applies in relation to a UK company which in any financial year (“the current financial year”) is a qualifying company.U.K.
Content of a company tax strategyU.K.
23(1)The company tax strategy must set out—U.K.
(a)the company's approach to risk management and governance arrangements in relation to UK taxation,
(b)the company's attitude towards tax planning (so far as affecting UK taxation),
(d)the company's approach towards its dealings with HMRC.
Penalty for non-compliance with paragraph 22U.K.
24(1)This paragraph applies where paragraph 22 requires a company tax strategy to be published for a UK company in any financial year.U.K.
Qualifying partnerships: duty to publish a partnership tax strategyU.K.
25(1)Paragraphs 22 to 24 apply in relation to a UK partnership which is (in any financial year of the partnership) a qualifying partnership as they apply to a UK company which is (in any financial year of the company) a qualifying company.U.K.
(b)as if for “company tax strategy” (in each place) there were substituted “ partnership tax strategy ”, and
(c)as if for “company” and “company's” (in each place) there were substituted respectively “ partnership ” and “partnership's”.
Penalties under this Part: general provisionsU.K.
26(1)Paragraphs 27 to 33 apply in relation to the liability of any person to a penalty under this Part and, accordingly, in those paragraphs—U.K.
Failure to comply with a time limitU.K.
Reasonable excuseU.K.
28(1)Liability to a penalty for a failure does not arise if the person who would otherwise be liable to that penalty satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that the person had a reasonable excuse for that failure.U.K.
Assessment of penaltiesU.K.
29(1)Where a person becomes liable to a penalty—U.K.
30(1)A person may appeal against a decision of HMRC that a penalty is payable by that person.U.K.
31(1)A penalty must be paid—U.K.
Power to change amount of penaltiesU.K.
32(1)If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for any sums for the time being specified in paragraph 18, 21 or 24 such other sum as appear to them to be justified by the change.U.K.
Application of provisions of TMA 1970U.K.
Meaning of “tax strategy”U.K.
PART 3 U.K.Sanctions for persistently unco-operative large businesses
Large groups falling within Part 3U.K.
36(1)A UK group has “engaged in unco-operative behaviour” if—U.K.
37(1)A member of a UK group has, or two or more members of a UK group (taken together) have, “satisfied the behaviour condition” if it has, or they have, behaved in a manner which has delayed or otherwise hindered HMRC in the exercise of their functions in connection with determining the liability to UK taxation of the group or a member of the group.U.K.
38(1)A member of a UK group has “satisfied the arrangements condition” if it is a party to a tax avoidance scheme.U.K.
39(1)There is a significant tax issue in respect of a UK group or a member of a UK group where—U.K.
(c)as regards the amount of the liability, the difference between HMRC's view and the view of the member is, or is likely to be, not less than £2 million.
41(1)A designated HMRC officer may give the head of a UK group a notice under this paragraph (a “warning notice”) if the officer considers that the group is a qualifying group that falls within this Part.U.K.
Special measures noticesU.K.
42(1)This paragraph applies to a UK group if—U.K.
43(1)A special measures notice—U.K.
44(1)This paragraph applies to a UK group if—U.K.
45(1)This paragraph applies in relation to a UK group where—U.K.
Circumstances in which warning and special measures notices are treated as having been givenU.K.
46(1)Sub-paragraphs (2) and (3) apply where—U.K.
(b)before the notice ceases to have effect, B1 becomes a member of a group headed by another relevant body ( “ H1 ”).
(b)before the notice ceases to have effect, B2 becomes a member of a group headed by another relevant body ( “ H2 ”).
(b)before the notice ceases to have effect, B3 becomes a member of a group headed by another relevant body ( “ H3 ”).
Sanctions: liability for penalties for errors in documents given to HMRCU.K.
47(1)For the purposes of Schedule 24 to FA 2007 (penalties for errors), an inaccuracy in a document given to HMRC by or on behalf of a person is to be treated as being due to failure by the person to take reasonable care if—U.K.
(a)it is deliberate on the part of the person or someone acting on the person's behalf,
(b)it is in fact due to a failure by the person or someone acting on the person's behalf to take reasonable care, or
Sanctions: Commissioners publishing informationU.K.
49(1)If a group is subject to a confirmed special measures notice, the Commissioners for Her Majesty's Revenue and Customs (“the Commissioners”) may publish the following information—U.K.
Application of Part 3 to large UK sub-groupsU.K.
50(1)A UK sub-group of a foreign group falls within this Part if—U.K.
Application of Part 3 to large companiesU.K.
51(1)A UK company falls within this Part if—U.K.
Application of Part 3 to large partnershipsU.K.
52(1)A UK partnership falls within this Part if—U.K.
(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.
(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—
Meaning of “designated HMRC officer”U.K.
53In this Part “designated HMRC officer” means an officer of Revenue and Customs who has been designated by the Commissioners for Her Majesty's Revenue and Customs for the purposes of this Part.
Amendment of power under section 122 of FA 2015U.K.
55(1)Regulations under this Schedule are to be made by statutory instrument.U.K.