Finance Act 1998

42 (1) Schedule 1A to the Taxes Management Act 1970 (claims, etc. not included in returns) is amended as follows.

(2) In paragraph 1, for the definition of “profits” substitute—

• ““profits”—

  (a)

  in relation to income tax, means income,

  (b)

  in relation to capital gains tax, means chargeable gains, and

  (c)

  in relation to corporation tax, means profits as computed for the purposes of that tax;”.

(3) In paragraph 2(5)(c) after “section 12 of this Act” insert “or paragraph 13 of Schedule 18 to the Finance Act 1998”.

(4) In paragraph 2A (keeping and preserving of records), in sub-paragraphs (3) and (5)(a) after “12B(4A) of this Act” insert “or paragraph 22(3) of Schedule 18 to the Finance Act 1998”.

(5) In paragraph 5 (power to enquire into claims), in sub-paragraph (3)(b) for “section 9A(1), 11AB(1) or 12AC(1) of this Act” substitute “section 9A(1) or 12AC(1) of this Act or paragraph 24 of Schedule 18 to the Finance Act 1998”.

(6) In paragraph 6 (power to call for documents for purposes of enquiries), for sub-paragraph (3) substitute—

“(3A) In complying with a notice under this paragraph copies of documents may be produced instead of originals, but—

(a) the copies must be photographic or other facsimiles, and

(b) the officer may by notice require the original to be produced for inspection.

A notice under paragraph (b) must specify the time (which must not be less than 30 days) within which the company is to comply with it.

(3B) The officer may take copies of, or make extracts from, any document produced to him under this paragraph.

(3C) A notice under this paragraph does not oblige the claimant to produce documents or provide accounts or information relating to the conduct of any pending appeal by the claimant.”.

(7) After that paragraph insert—

“Appeal against notice to produce documents, etc

6A (1) An appeal may be brought against a requirement imposed by a notice under paragraph 6 to produce documents or provide accounts or information.

(2) Notice of appeal must be given—

(a) in writing,

(b) within 30 days after the notice was given to the claimant,

(c) to the officer of the Board by whom that notice was given.

(3) On an appeal under this paragraph the Commissioners—

(a) shall set aside the notice so far as it requires the production of documents, or the provision of accounts or information, which appears to them not reasonably required for the purposes of the enquiry, and

(b) shall confirm the notice so far as it requires the production of documents, or the provision of accounts or information, which appear to them are reasonably required for the purposes of the enquiry.

(4) A notice which is confirmed by the Commissioners (or so far as it is confirmed) has effect as if the period specified in it for complying was 30 days from the determination of the appeal.

(5) The decision of the Commissioners on an appeal under this paragraph is final and conclusive.”.