Who Must Notify Inland Revenue?
The primary obligation rests on the “promoter” — i.e., the person that markets or designs a “notifiable arrangement.” A promoter can be a bank, securities house, person whose business involves the provision of tax services, or a company in the same group as a company carrying on one of those businesses. However, if there is no UK promoter, the taxpayer is required to make the disclosure. In the case of planning developed “in-house” for a group of companies, the disclosure must be made at the same time as the filing of the company’s tax return. However, in two circumstances, the company must notify Inland Revenue within five business days of starting to implement the arrangement. Those circumstances are: • where the in-house tax department develops planning that involves companies that are not 51-percent subsidiaries (e.g., an associated company or a joint venture); and • where there is a UK nonresident promoter, but no UK resident promoter. What Arrangements Should Be Disclosed? To be
