PART XVIII DOUBLE TAXATION RELIEF

CHAPTER II RULES GOVERNING RELIEF BY WAY OF CREDIT

Miscellaneous rules

804ZC Notices under section 804ZA: further provision
(1) Subsection (2) applies if the Board give a notice to a person under section 804ZA before the person has made his tax return for the chargeable period specified in the notice.
(2) If the person makes a tax return for that period before the end of the period of 90 days beginning with the day on which the notice is given, he may—
(a) make a tax return that disregards the notice, and
(b) at any time after making the return and before the end of the period of 90 days, amend the return for the purpose of complying with the notice.
(3) If a person has made a tax return for a chargeable period, the Board may only give him a notice under section 804ZA in relation to that period if a notice of enquiry has been given to him in respect of his tax return for that period.
(4) After any enquiries into the person's tax return for that period have been completed, the Board may only give him a notice under section 804ZA in relation to that period if the requirements in subsections (5) and (7) are satisfied.
(5) The first requirement is that at the time the enquiries were completed, the Board could not have been reasonably expected, on the basis of the information made available to them or to an officer of theirs before that time, to have been aware that the circumstances were such that a notice under section 804ZA could have been given to the person in relation to that period.
(6) For the purposes of subsection (5)—
(a) section 29(6) and (7) of the Management Act (information made available) applies as it applies for the purposes of section 29(5), and
(b) paragraph 44(2) and (3) of Schedule 18 to the Finance Act 1998 applies as it applies for the purposes of paragraph 44(1).
(7) The second requirement is that—
(a) the person was requested to produce, provide or furnish information during an enquiry into the return for that period, and
(b) if the person had duly complied with the request, the Board could have been reasonably expected to give the person a notice under section 804ZA in relation to that period.
(8) If a person is given a notice under section 804ZA in relation to a chargeable period after having made a tax return for that period, the person may amend the return for the purpose of complying with the notice at any time before the end of the period of 90 days beginning with the day on which the notice is given.
(9) If the notice under section 804ZA is given to the person after he has been given a notice of enquiry in respect of his tax return for the period, no closure notice may be given in relation to his tax return until—
(a) the end of the period of 90 days beginning with the day on which the notice under section 804ZA is given, or
(b) the earlier amendment of the return for the purpose of complying with the notice.
(10) If the notice under section 804ZA is given to the person after any enquiries into the return for the period are completed, no discovery assessment may be made as regards the income or chargeable gain to which the notice relates until—
(a) the end of the period of 90 days beginning with the day on which the notice under section 804ZA is given, or
(b) the earlier amendment of the return for the purpose of complying with the notice.
(11) Subsections (2)(b) and (8) do not prevent a person's tax return for a chargeable period becoming incorrect if—
(a) a notice under section 804ZA is given to the person in relation to that period,
(b) the return is not amended in accordance with subsection (2)(b) or (8) for the purpose of complying with the notice, and
(c) the return ought to have been so amended.
(12) In this section—
“closure notice” means a notice under—
(a) section 28A or 28B of the Management Act, or
(b) paragraph 32 of Schedule 18 to the Finance Act 1998;
“discovery assessment” means an assessment under—
(a) section 29 of the Management Act, or
(b) paragraph 41 of Schedule 18 to the Finance Act 1998;
“notice of enquiry” means a notice under—
(a) section 9A or 12AC of the Management Act, or
(b) paragraph 24 of Schedule 18 to the Finance Act 1998.
Ss. 804ZA-804ZC inserted (with effect in accordance with s. 87(3)-(5) of the amending Act) by Finance Act 2005 (c. 7), s. 87(1)