SCHEDULES
SCHEDULE 34Promoters of tax avoidance schemes: threshold conditions
PART 1Meeting the threshold conditions: general
Restrictive contractual terms
11
1
A person (“P”) meets this condition if P enters into an agreement with another person (“C”) which relates to a relevant proposal or relevant arrangements in relation to which P is a promoter, on terms which—
a
impose a contractual obligation on C which falls within sub-paragraph (2) or (3), or
b
impose on C both obligations within sub-paragraph (4) and obligations within sub-paragraph (5).
2
A contractual obligation falls within this sub-paragraph if it prevents or restricts the disclosure by C to HMRC of information relating to the proposals or arrangements, whether or not by referring to a wider class of persons.
3
A contractual obligation falls within this sub-paragraph if it requires C to impose on any tax adviser to whom C discloses information relating to the proposals or arrangements a contractual obligation which prevents or restricts the disclosure of that information to HMRC by the adviser.
4
A contractual obligation falls within this sub-paragraph if it requires C to—
a
meet (in whole or in part) the costs of, or contribute to a fund to be used to meet the costs of, any proceedings relating to arrangements in relation to which P is a promoter (whether or not implemented by C), or
b
take out an insurance policy which insures against the risk of having to meet the costs connected with proceedings relating to arrangements which C has implemented and in relation to which P is a promoter.
5
A contractual obligation falls within this paragraph if it requires C to obtain the consent of P before—
a
entering into any agreement with HMRC regarding arrangements which C has implemented and in relation to which P is a promoter, or
b
withdrawing or discontinuing any appeal against any decision regarding such arrangements.
6
In sub-paragraph (5)(b), the reference to withdrawing or discontinuing an appeal includes any action or inaction which results in an appeal being discontinued.
7
In this paragraph—
“proceedings” includes any sort of proceedings for resolving disputes (and not just proceedings in court), whether commenced or contemplated;
“tax adviser” means a person appointed to give advice about the tax affairs of another person (whether appointed directly by that person or by another tax adviser of that person).