Tax Collection and Management (Wales) Act 2016 section 90

Requiring information and documents in relation to a group of undertakings

Section 90 sets out how the Welsh Revenue Authority (WRA) can use third party notices to obtain information and documents relating to groups of undertakings, such as parent companies and their subsidiaries.

• WRA can issue a third party notice to check the tax position of a parent undertaking together with any of its subsidiary undertakings as a group
• When such a notice is issued to any person, references to the taxpayer in the normal third party notice rules are treated as references to the parent undertaking, and the notice must state its purpose
• When a third party notice is issued directly to a parent undertaking to check more than one subsidiary, the normal requirements for taxpayer approval and notification do not apply, but the notice must state its purpose and restrictions that normally apply following a tax return apply as if the notice were a taxpayer notice issued to each subsidiary
• The terms "parent undertaking", "subsidiary undertaking" and "undertaking" follow the definitions in the Companies Act 2006, with a modification for land transaction tax purposes that broadens the definition of "undertaking" to include entities not carrying on a trade or business