Finance Act 2014

237 Duty to give conduct notice

(1) Subsections (5) to (9) apply if an authorised officer becomes aware at any time that a person (“P”) who is carrying on a business as a promoter—

(a) has, in the period of 3 years ending with that time, met one or more threshold conditions, and

(b) was carrying on a business as a promoter when P met that condition.

(2) Part 1 of Schedule 34 sets out the threshold conditions and describes how they are met.

(3) Part 2 of that Schedule contains provision about the meeting of threshold conditions by bodies corporate.

(4) See also Schedule 36 (which contains provision about the meeting of threshold conditions and other conditions by partnerships).

(5) The authorised officer must determine whether or not P’s meeting of the condition mentioned in subsection (1)(a) (or, as the case requires, P’s meeting of all those conditions, taken together) should be regarded as significant in view of the purposes of this Part.

(6) Subsection (5) does not apply if a conduct notice or a monitoring notice already has effect in relation to P.

(7) If the authorised officer determines under subsection (5) that P’s meeting of the condition or conditions in question should be regarded as significant, the officer must give P a conduct notice, unless subsection (8) applies.

(8) This subsection applies if the authorised officer determines that, having regard to the extent of the impact that P’s activities as a promoter are likely to have on the collection of tax, it is inappropriate to give P a conduct notice.

(9) The authorised officer must determine under subsection (5) that the meeting of the condition (or all the conditions) mentioned in subsection (1)(a) should be regarded as significant if the condition (or any of the conditions) is in any of the following paragraphs of Schedule 34—

(a) paragraph 2 (deliberate tax defaulters);

(b) paragraph 3 (breach of Banking Code of Practice);

(c) paragraph 4 (dishonest tax agents);

(d) paragraph 6 (persons charged with certain offences);

(e) paragraph 7 (opinion notice of GAAR Advisory Panel).