SCHEDULES

SCHEDULE 36Promoters of tax avoidance schemes: partnerships

PART 1Partnerships as persons

4Threshold conditions: actions of partners in a personal capacity

1

Sub-paragraph (2) applies where—

a

a relevant threshold condition is met by a person (“P”) at a time (“the earlier time”) when P is a controlling member, or managing partner, of a partnership,

b

a determination under section 237 is made at a later time in relation to the partnership, and

c

P is a controlling member, or managing partner, of the partnership at the time of the determination.

2

The partnership is regarded as having met the threshold condition at the earlier time (regardless of whether or not the partnership was bound by the act or omission as a result of which P met the threshold condition).

3

“Relevant threshold condition” means a threshold condition specified in any of the following paragraphs of Schedule 34—

a

paragraph 2 (deliberate tax defaulters);

b

paragraph 4 (dishonest tax agents);

c

paragraph 6 (criminal offences);

d

paragraph 7 (opinion notice of GAAR advisory panel);

e

paragraph 8 (disciplinary action by a professional body);

f

paragraph 9 (disciplinary action by a regulatory authority);

g

paragraph 10 (failure to comply with information notice).