Finance Act 1998

Determination of tax payable if notice complied with in part U.K.

37 (1) If a notice requiring a company tax return is served on a company and— U.K.

(a) a return is delivered for an accounting period ending in or at the end of the period specified in the notice, but

(b) there is another period so ending (the “outstanding period") which appears to the Inland Revenue is or may be an accounting period,

the Inland Revenue may determine to the best of their information and belief the amount of corporation tax payable by the company for the outstanding period.

(2) The power to make a determination under this paragraph becomes exercisable—

(a) if the filing date for the outstanding period can be ascertained and no return is delivered on or before that date;

(b) if no such date can be ascertained and no return for that period is delivered by the later of—

(i) 30 months from the end of the period specified in the notice, or

(ii) three months from the day on which the notice was served.

(3) Notice of a determination under this paragraph must be served on the company, stating the date on which the determination is issued.

(4) No determination under this paragraph may be made more than five years after the day on which the power first became exercisable.

(5) If the company shows—

(a) that the outstanding period is not an accounting period, or

(b) that it has delivered a return for that period,

any determination under this paragraph is of no effect.