Interpretation

13A

1

This paragraph contains definitions for the purposes of this Part of this Schedule.

2

Each of the following is a “relevant body”—

a

a body corporate, and

b

a partnership.

3

“Relevant time” means the time referred to in section 237(1A) (duty to give conduct notice to person treated as meeting threshold condition).

4

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

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 against a member of a trade or profession);

f

paragraph 9 (disciplinary action by regulatory authority);

g

paragraph 10 (failure to comply with information notice).

5

A person controls a body corporate if the person has power to secure that the affairs of the body corporate are conducted in accordance with the person's wishes—

a

by means of the holding of shares or the possession of voting power in relation to the body corporate or any other relevant body,

b

as a result of any powers conferred by the articles of association or other document regulating the body corporate or any other relevant body, or

c

by means of controlling a partnership.

6

A person controls a partnership if the person is a controlling member or the managing partner of the partnership.

7

“Controlling member” has the same meaning as in Schedule 36 (partnerships).

8

“Managing partner”, in relation to a partnership, means the member of the partnership who directs, or is on a day-to-day level in control of, the management of the business of the partnership.

Treating persons under another's control as meeting a threshold condition

13B

1

A relevant body (“RB”) is treated as meeting a threshold condition at the relevant time if—

a

the threshold condition was met by a person (“C”) at a time when—

i

C was carrying on a business as a promoter, or

ii

RB was carrying on a business as a promoter and C controlled RB, and

b

RB is controlled by C at the relevant time.

2

Where C is an individual sub-paragraph (1) applies only if the threshold condition mentioned in sub-paragraph (1)(a) is a relevant threshold condition.

3

For the purposes of determining whether the requirements of sub-paragraph (1) are met by reason of meeting the requirement in sub-paragraph (1)(a)(i), it does not matter whether RB existed at the time when the threshold condition was met by C.

Treating persons in control of others as meeting a threshold condition

13C

1

A person other than an individual is treated as meeting a threshold condition at the relevant time if—

a

a relevant body (“A”) met the threshold condition at a time when A was controlled by the person, and

b

at the time mentioned in paragraph (a) A, or another relevant body (“B”) which was also at that time controlled by the person, carried on a business as a promoter.

2

For the purposes of determining whether the requirements of sub-paragraph (1) are met it does not matter whether A or B (or neither) exists at the relevant time.

Treating persons controlled by the same person as meeting a threshold condition

13D

1

A relevant body (“RB”) is treated as meeting a threshold condition at the relevant time if—

a

RB or another relevant body met the threshold condition at a time (“time T”) when it was controlled by a person (“C”),

b

at time T, there was a relevant body controlled by C which carried on a business as a promoter, and

c

RB is controlled by C at the relevant time.

2

For the purposes of determining whether the requirements of sub-paragraph (1) are met it does not matter whether—

a

RB existed at time T, or

b

any relevant body (other than RB) by reason of which the requirements of sub-paragraph (1) are met exists at the relevant time.