Taxation (International and Other Provisions) Act 2010 section 371UE

Appeals affecting more than one person

Section 371UE sets out the procedure for handling tax appeals under the controlled foreign companies (CFC) rules where the outcome of a question in the appeal is likely to affect the tax liability of other persons connected with the same CFC.

• The section applies when an appeal raises a question about the CFC rules whose resolution is likely to affect the CFC-related tax liability of someone other than the person bringing the appeal.
• A relevant appeal is either an appeal against an amendment to a company tax return or an appeal against a discovery assessment, both under Schedule 18 to the Finance Act 1998.
• Any person whose CFC-related tax liability is likely to be affected by the outcome of the question has the right to join the proceedings as a party.
• The tribunal must determine the CFC question separately from other issues in the appeal, and its determination takes effect as though it were made in an appeal to which all affected persons were parties.