Notification of uncertain tax treatment by large businesses
As expected as part of the ‘Tax Day’ announcements, HMRC has published the second consultation on notification of uncertain tax treatment by large businesses, as well as a summary of responses to the first consultation.
There has been considerable movement from the first consultation last Summer. In particular, the definition of uncertain tax treatment has been substantially revised and is now based on ‘triggers’ (discussed in Chapter 3 of the consultation), which are intended to be objective.
There is a general exception proposed for matters that have already been discussed with HMRC (see paragraphs 2.26 – 2.27), although it is not clear how this will work in practice or be legislated for.
The scope of measure will be limited to CT, income tax (including PAYE) and VAT.
However, there is much that remains unclear and further input is sought in questions posed by the consultation (summarised at page 22 of the consultation).
The CIOT will be responding to this consultation and we would welcome your comments and thoughts. Please send these to email@example.com by 7 May 2021.