Corporation Tax Act 2010 section 744

Opposed notifications: statutory declarations

Section 744 sets out how a company can formally challenge a preliminary notification from HMRC that the counteraction of a corporation tax advantage may apply to it, by making a statutory declaration within a strict time limit.

• A company that receives a preliminary notification and believes the tax advantage counteraction rules do not apply to it may make a statutory declaration setting out the facts and circumstances supporting that view, and send it to the HMRC officer.
• The statutory declaration must be sent within 30 days of the date the notification was issued.
• If the HMRC officer receives the declaration and sees no reason to take the matter further, the counteraction rules do not apply and no counteraction notice can be served on the company in respect of those transactions.
• This procedure gives companies a formal right of response before any counteraction notice is issued, potentially resolving the matter without further enforcement action.