Taxation (International and Other Provisions) Act 2010 section 56

Power of Revenue and Customs to make determinations where no return filed etc.

Section 56 gives HMRC the power to make their own determination of a company's disallowed interest amounts where the group has failed to file a proper interest restriction return or comply with related requirements.

• HMRC can step in where the filing deadline has passed and no return has been filed, or the return is inaccurate or incomplete, or a required revised return has not been submitted in time.
• An HMRC officer may determine, to the best of their information and belief, each company's share of the group's total disallowed amount and how that share is allocated across the company's accounting periods.
• Where the determination results in a non-nil amount for an accounting period, the company must exclude tax-interest expense amounts equal to that share from its calculations for that period.
• HMRC must notify both the affected company and the reporting company of the determination, and time limits apply: 12 months from the revised return deadline (where a revised return was required but not filed) or 3 years from the original filing date in all other cases.