Revenue Scotland and Tax Powers Act 2014 section 128

Third party notices and notices under section 127: groups of undertakings

Section 128 provides simplified rules for how Revenue Scotland can issue information notices when checking the tax position of corporate groups, rather than having to issue separate notices for each company in the group.

• When Revenue Scotland issues a third party notice to check the tax position of a parent company and its subsidiaries, the notice only needs to name the parent undertaking rather than listing every subsidiary individually.
• Where a third party notice is issued to someone outside the group, references to the taxpayer in the approval and copying requirements are treated as references to the parent undertaking.
• Where a third party notice is issued directly to a parent undertaking to check the tax position of multiple subsidiaries, certain approval and notification requirements are disapplied, and the notice is treated as if it were a taxpayer notice given to each subsidiary.
• The terms "parent undertaking", "subsidiary undertaking" and "undertaking" take their meaning from sections 1161 and 1162 of the Companies Act 2006, which define group relationships broadly to cover various types of business entity.

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