Section 94: Representations
Summary
1.This section allows a company receiving a preliminary notice to make representations to the designated HM Revenue & Customs (HMRC) officer in respect of that notice and governs the scope and handling of those representations.
Details of the Section
2.Subsection (2) allows written representations to be made within 30 days from the issue of a preliminary notice. Properly made representations must be considered by a designated officer before determining whether to issue a charging notice (see subsection (2) of section 95).
3.Subsection (3) provides that the designated HMRC officer may consider representations only if they are made on the grounds listed.
4.Subsection (4) provides that the designated HMRC officer is not required to consider representations that relate to certain matters even if the representations would otherwise fall within subsection (3). This exclusion does not apply to arithmetical errors within subsection (3)(a). This subsection does not restrict the representations an officer can consider under section 101 “HMRC review of charging notice” (see subsection (14) of that section).
5.Subsection (5) defines “the small or medium-sized enterprise requirement” for the purposes of subsection (3)(b).
6.Subsection (6) defines “the participation condition” for the purposes of subsection (3)(d)(ii).
7.Subsection (7) defines the “80% payment test” for the purposes of subsection (3)(c)(ii) and (d)(ii).
Background Note
8.The diverted profits tax is a new charge on diverted profits. The main objective is to counteract contrived arrangements used by large groups (typically multinational enterprises) that result in the erosion of the UK tax base.
