Finance Act 1999

86 Provisions supplementary to s. 85. U.K.

(1) The chargeable periods in relation to which provision may be made by a section 85 agreement include periods ending before the making of the agreement.

(2) An agreement shall not have effect in accordance with section 85(3) above in relation to any determination of a question which—

(a) relates to a time after a time as from which an officer of the Board has revoked the agreement in accordance with its terms;

(b) relates to a time after or in relation to which there has been a failure by a party to the agreement to comply with any provision of the agreement compliance with which is, under the terms of the agreement, to be a condition of its having effect; or

(c) relates to any matter as respects which any other conditions which, by the terms of the agreement, are to be conditions of its having effect have not been, or are no longer, satisfied.

(3) Where—

(a) there is a section 85 agreement between the Board and any person, and

(b) there is a mutual agreement made under and for the purposes of any double taxation arrangements which is not consistent with the terms of the section 85 agreement,

it shall be the duty of the Board to ensure that all such modifications of the section 85 agreement are made (whether in exercise of powers conferred on the Board by that agreement or otherwise) as may be necessary for enabling effect to be given to the mutual agreement in relation to the subject-matter of the section 85 agreement.

(4) It shall be the duty of any person who is a party to a section 85 agreement to provide the Board from time to time with all such reports and other information as he may be required to provide under the agreement or by virtue of any request made by an officer of the Board in accordance with the terms of the agreement.

(5) Where—

(a) the Board and any person have purported to enter into a section 85 agreement at any time,

(b) before that time, that person fraudulently or negligently provided the Board with information which was false or misleading,

(c) that information was so provided for or in connection with the application to the Board for the making of the agreement or otherwise in connection with its preparation, and

(d) the Board have notified that person that the agreement is nullified by reason of the misrepresentation,

the agreement shall be deemed never to have been made.

(6) Any provision of a section 85 agreement that provides for the modification or revocation of that agreement by the Board, or by an officer of the Board, may provide for the modification or revocation to take effect as from such time (including a time before the modification is made or the agreement revoked) as the Board or officer may determine.

(7) Where a section 85 agreement—

(a) relates to a chargeable period beginning or ending before the making of the agreement, and

(b) provides for the manner in which adjustments are to be made for tax purposes in consequence of that agreement,

the adjustments shall be made for those purposes in the manner provided for in the agreement.

(8) A person shall be liable to a penalty not exceeding £10,000 if he fraudulently or negligently makes any false or misleading statement to the Board or an officer of the Board either—

(a) for or in connection with any application to the Board for them to enter into a section 85 agreement; or

(b) otherwise in connection with the preparation of such an agreement.

(9) In section 98 of the M1 Taxes Management Act 1970 (penalties in connection with returns etc.), in the second column of the table, after the final entry there shall be inserted the following entry—

“Section 86(4) of the Finance Act 1999.”

(10) In this section—

• “double taxation arrangements” means any arrangements having effect under or by virtue of section 788 of the Taxes Act 1988 (double taxation agreements); and

• “section 85 agreement” means an agreement made for the purposes of section 85 above.

Marginal Citations

M1 1970 c.9.