Section 95: Charging Notice
Summary
1.This section provides for the issue of a charging notice to a company that has been given a preliminary notice and following consideration of any representations under section 94.
Details of the Section
2.Subsection (1) provides that this section applies where a designated HMRC officer has given a company a preliminary notice under section 93.
3.Subsection (2) provides for the issue of a charging notice to the company for the accounting period covered by the preliminary notice. Having considered any representations under section 94, a designated HMRC officer must either issue a charging notice or notify the company that no such charging notice will be issued. This must be done within 30 days from the end of the 30 day period allowed for representations under section 94 (whether or not any such representations have been made).
4.Subsection (3) allows a charging notice to be issued for an accounting period, notwithstanding that the company has been notified under subsection (2) that no charging notice will be issued for that accounting period, where that charging notice is pursuant to a different preliminary notice issued in respect of that same accounting period.
5.Subsection (4) refers to section 96 and section 97 for provision about the calculation of taxable diverted profits.
6.Subsection (5) stipulates what information and explanations must be included in the charging notice.
7.Subsection (6) provides that where a charging notice is issued to a company, a copy of the notice must be sent to “UKPE” where section 81 applies. “UKPE” is the United Kingdom permanent establishment as defined in section 81. A copy of the notice must be sent to “the avoided PE”, where section 86 applies. “The avoided PE” is the person defined as such in section 86.
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.
