Taxation (International and Other Provisions) Act 2010 section 44

Enquiry into return for wrong period or wrong group

Section 44 allows HMRC to extend an enquiry into an interest restriction return where the return has been filed for the wrong accounting period or where the worldwide group has been incorrectly identified or composed.

• If HMRC believes an interest restriction return may have been submitted for the wrong period of account, the enquiry can extend to determining the correct period
• When a return is filed for the wrong period, the normal time limits for opening an enquiry are applied as though the return had been submitted for the correct period
• If HMRC believes the worldwide group identified in the return is incorrectly constituted — for example, it actually comprises multiple groups, includes entities belonging to other groups, or excludes entities that should be members — the enquiry power extends to cover this
• Where the group composition is wrong, HMRC can enquire into the returns that ought to have been made for the correct worldwide groups and their periods of account