Part 6U.K.Enquiries into a self-assessment return
15(1)This Part of this Schedule applies if the filing member of a multinational group has submitted a self-assessment return under paragraph 13 for an accounting period.U.K.
(2)In this Part “return” means a self-assessment return (including as amended under paragraph 14).
16(1)An officer of Revenue and Customs may enquire into the return if, within the time allowed, the officer gives notice to the filing member of the officer's intention to do so.U.K.
(2)The time allowed is—
(a)if the return was submitted on or before the submission date, up to the end of the period of 12 months after the submission date;
(b)if the return was submitted after the submission date, up to and including the quarter day next following the first anniversary of the day on which the return was delivered;
(c)if the return is amended under paragraph 14, up to and including the quarter day next following the first anniversary of the day on which the return was amended.
(3)The submission date is the day ending the period for submission of the return referred to in paragraph 13(8) (or the longer period referred to in paragraph 13(10) where applicable).
(4)The quarter days are 31 January, 30 April, 31 July and 31 October.
(5)A notice under this paragraph is referred to in this Part of this Schedule as a “notice of enquiry”.
(6)A return that has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment of the return.
17(1)An enquiry may extend to anything contained in the return, or required to be contained in the return, including anything that relates—U.K.
(a)to the question of whether multinational top-up tax is chargeable in respect of the accounting period, or
(b)to the amount of tax so chargeable.
(2)But, where the notice of enquiry is given in consequence of an amendment of a return—
(a)at a time when it is no longer possible to give a notice of enquiry under paragraph 16(2)(a) or (b),
(b)after a partial closure notice (see paragraph 22(1)) has been issued in relation to the matters to which the amendment relates or which are affected by the amendment, or
(c)after an enquiry into a return has been completed,
the enquiry into the return is limited to matters to which the amendment relates or that are affected by the amendment.
18(1)For the purposes of this Part an enquiry is in progress into a return for the whole of the period—U.K.
(a)beginning with the day on which notice of enquiry is given in relation to that return, and
(b)ending with the day on which the enquiry is completed.
(2)The enquiry is completed on the day a final closure notice is given (see paragraph 22(2)).
19(1)If at a time when an enquiry is in progress into a return an officer of Revenue and Customs forms the opinion—U.K.
(a)that an amount stated in the return as the amount of multinational top-up tax payable by a member of the group is insufficient, and
(b)that unless the assessment in the return is immediately amended there is likely to be a loss of tax to the Crown,
the officer may by notice in writing to the filing member amend the assessment to make good the deficiency.
(2)In the case of an enquiry that under paragraph 17(2) is limited to matters arising from an amendment of the return, sub-paragraph (1) applies only so far as the deficiency is attributable to the amendment.
(3)In the case of an enquiry in relation to which one or more partial closure notices have been given, sub-paragraph (1) applies only so far as the deficiency is attributable to matters not addressed by those notices.
20(1)This paragraph applies if a return is amended at a time when an enquiry is in progress into the return.U.K.
(2)The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry (whether or not the amendment takes effect under sub-paragraph (4)).
(3)Sub-paragraph (4) applies where the amendment is made otherwise than under paragraph 19.
(4)So far as the amendment affects the amount stated in the return as the amount of tax payable, the amendment does not take effect, in relation to any matter to which it relates or which is affected by it, while the enquiry is in progress, except to the extent that—
(a)a partial closure notice has been given in relation to a matter to which the amendment relates or which is affected by it, and
(b)the notice states that the amendment is to take effect.
(5)The final closure notice—
(a)must state whether and to what extent an amendment whose effect is deferred under sub-paragraph (4) is to take effect;
(b)may state that an amendment made under paragraph 19, and whose effect is not terminated or amended by a partial closure notice, is to cease to have effect or is to be amended as specified in the notice.
21(1)At any time when an enquiry is in progress into a return any question arising in connection with the subject-matter of the enquiry may be referred to the tribunal for determination.U.K.
(2)Notice of the referral must be given to the tribunal jointly by the filing member and an officer of Revenue and Customs.
(3)More than one notice of referral may be given in relation to an enquiry.
(4)An officer of Revenue and Customs or the filing member may withdraw a notice of referral.
(5)The effect of the notice being withdrawn is that the questions referred are not (unless they have already been finally determined) to be finally determined by the tribunal.
(6)While proceedings on a referral are in progress in relation to an enquiry—
(a)no closure notice may be given in relation to the enquiry, and
(b)no application may be made for a direction to give such a notice.
(7)Proceedings are in progress where—
(a)notice of referral has been given,
(b)the notice has not been withdrawn, and
(c)the questions referred have not been finally determined.
(8)In this paragraph, a question referred is finally determined when—
(a)it has been determined by the tribunal, and
(b)there is no further possibility of the determination being varied or set aside (disregarding any power to grant permission to appeal out of time).
(9)The determination of a question referred to the tribunal is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal under Part 12 of this Schedule.
(10)The determination must be taken into account by an officer of Revenue and Customs—
(a)in reaching the officer's conclusions on the enquiry, and
(b)in formulating any amendments of the return required to give effect to those conclusions.
(11)The question determined may not be reopened on an appeal under Part 12 of this Schedule, except to the extent that it could be reopened if it had been determined as a preliminary issue in that appeal.
22(1)Any matter to which an enquiry into a return relates is completed by an officer of Revenue and Customs giving the filing member a partial closure notice.U.K.
(2)An enquiry into a return is completed by an officer of Revenue and Customs giving the filing member a final closure notice.
(3)In this Part of this Schedule, “closure notice” means a partial closure notice or a final closure notice.
(4)A closure notice is a notice stating—
(a)that the enquiry, or the enquiry in so far as it relates to a particular matter, is complete;
(b)the conclusion reached in the enquiry.
(5)The conclusion must be one of the following—
(a)that no amendment of the return is required, or
(b)that the amendments of the return specified in the notice are to be made.
(6)A closure notice takes effect when it is given to the filing member.
(7)The officer—
(a)must provide additional information together with the notice as to the basis for the conclusion;
(b)may provide such other information as the officer thinks fit.
(8)A final closure notice may not, in relation to a matter to which a partial closure notice relates, state a different conclusion in respect of that matter to that stated in the partial closure notice.
23(1)The filing member may apply to the tribunal for a direction that an officer of Revenue and Customs give a closure notice within a specified period.U.K.
(2)The tribunal hearing the application must give a direction unless satisfied that HMRC has reasonable grounds for not giving a closure notice within a specified period.
(3)An application under this paragraph is to be treated as an appeal under Part 12 of this Schedule.