Finance (No. 2) Act 2017

Referral to GAAR Advisory Panel U.K.

26 (1) A designated HMRC officer may make a referral under this paragraph if— U.K.

(a) the officer considers that a person is liable to a penalty under paragraph 1 in relation to particular arrangements (“the arrangements in question”), and

(b) the requirements of paragraph 28 (procedure before making of referral) have been complied with.

(2) But a referral may not be made under this paragraph if a GAAR final decision notice (within the meaning of paragraph 24(1)) has already been given in relation to—

(a) the arrangements in question, or

(b) arrangements that are equivalent to those arrangements.

(3) A referral under this paragraph is a referral to the GAAR Advisory Panel of the question whether the entering into and carrying out of tax arrangements such as are described in the referral statement (see paragraph 27) is a reasonable course of action in relation to the relevant tax provisions.

27 (1) In this Part of this Schedule “the referral statement”, in relation to a referral under paragraph 26, means a statement made by a designated HMRC officer which— U.K.

(a) accompanies the referral,

(b) is a general statement of the material characteristics of the arrangements in question (within the meaning given by paragraph 26(1)), and

(c) complies with sub-paragraph (2).

(2) A statement under this paragraph must—

(a) contain a factual description of the arrangements in question,

(b) set out HMRC's view as to whether those arrangements accord with established practice (as it stood when those arrangements were entered into),

(c) explain why it is the designated HMRC officer's view that a tax advantage of the nature described in the statement and arising from tax arrangements having the characteristics described in the statement would be a tax advantage arising from arrangements that are abusive,

(d) set out any matters the designated HMRC officer is aware of which may suggest that any view of HMRC or the designated HMRC officer expressed in the statement is not correct, and

(e) set out any other matters which the designated HMRC officer considers are required for the purposes of the exercise of the GAAR Advisory Panel's functions under paragraphs 33 and 34.