Taxation (International and Other Provisions) Act 2010 section 70A

Failure to comply with a requirement to amend company tax return

Section 70A sets out the penalty and consequences that apply when a company fails to amend its company tax return by the required deadline following a transfer pricing or diverted profits adjustment.

• A company that fails to amend its company tax return by the specified deadline is liable to a fixed penalty of £500.
• HMRC may step in and make the required amendments themselves at any time within 12 months of the amendment deadline, based on the best information available to them.
• If HMRC makes the amendments, the company has a 3-month window from the date of HMRC's amendment to correct those amendments if it believes they are wrong.
• The penalty provisions that apply to late filing penalties (including reasonable excuse defences and appeal rights) also apply to this penalty, with the amendment deadline substituted for the usual filing date.