Groups of Companies

For groups of companies the position with regard to third party notices differs depending on whether:-

  • the notice is to check the tax position of the parent and a subsidiary or subsidiaries
  • the notice is issued to the parent to check the tax position of a subsidiary or subsidiaries.

 

Notice to check the parent and subsidiary

If the third party notice is issued to check the tax position of the parent and a subsidiary or subsidiaries:-

  • it must state that it is for checking the tax position of the parent and any of its subsidiaries – it does not need to name the subsidiaries
  • only the parent’s approval is needed for a taxpayer-approved third party notice
  • the notice only has to be sent to the parent
  • if the approval of the Tribunal is sought, the summary of reasons for requiring the information or documents need only be sent to the parent.

 

The above does not apply if the notice is not for checking the parent’s tax position but only if that of a subsidiary or subsidiaries.

Notice to the parent to check a subsidiary

If the third party notice is to check a subsidiary or subsidiaries, but not the parent’s tax position:-

  • the conditions for giving a taxpayer notice to the subsidiary must be met
  • no approval is required
  • all the subsidiaries must be named
  • no reasons for seeking the information or documents has to be given (although HMRC generally will)
  • if the approval of the Tribunal is sought, all the subsidiaries will have to be provided with a summary of the reasons for requiring the information or documents
  • a copy of the notice does not have to be sent to the subsidiaries.

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More Information

Partnerships

Partnerships The rules for a third party notice to check the tax position of a partner depend on whether the notice is:- to someone who is…
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