817T Payment Notices and Scheme Participants

Summary

This section provides that Revenue may issue a payment notice to a taxpayer who engaged in tax avoidance which is substantially similar to tax avoidance which has already been successfully challenged before the Appeal Commissioners.

Details

(1) A scheme is defined as a transaction to which section 817S(2) applies

A scheme participant is a person who entered into a transaction to which section 817S(2) applies or a substantially similar transaction.

(2) This subsection sets out when a transaction is substantially similar to another transaction. The following four circumstances cover when a transaction is substantially similar to another:

(a) If the first transaction is one to which section 817S(3) applies, meaning it is a tax avoidance arrangement which has been found not to work by the Appeal Commissioners, and if the same principles and reasoning given by the Appeal Commissioners in relation to that case was applied to an amended assessment in a second case and would result in that amended assessment being upheld, then the second case is substantially similar to the first.

(b) If two transactions were assigned the same transaction number under the mandatory disclosure regime. This means that the two transactions were implemented on foot of the same advice by the same advisor.

(c) If two transactions were implemented by two taxpayers on foot of advice from the same legal advisor who asserted legal professional privilege (LPP), where, had that advisor not asserted LPP the two transactions would have been assigned the same transaction number.

(d) If a promoter failed to comply with the mandatory reporting regime, but if they had, the two transactions would have been assigned the same transaction number.

(3) Where Revenue sends, or could send, a payment notice to a taxpayer under section 817S and that taxpayer is a scheme participant, then Revenue may also send a payment notice to all other participants in that scheme.

(4) & (10) A payment notice sent to a scheme participant under this section must have a copy of the Appeal Commissioners determination appended to it, and the normal obligation on Revenue in relation to secrecy shall not apply in relation to this determination. The notice must state why the transaction in question is substantially similar to the transaction to which the determination relates and. if relevant, it must include the transaction number. It must also state the amount of tax that is payable under the payment notice.

(5) & (6) A taxpayer who receives a payment notice may write to Revenue, within 30 days, providing additional information and request that Revenue reconsider whether or not their transaction is substantially similar to the transaction to which the determination relates. Revenue must consider the additional information and make a determination that either confirms or withdraws the payment notice.

(7) & (9) Where a taxpayer is aggrieved with Revenue’s decision to confirm a payment notice, they may appeal in writing, within 30 days after the date of the notice, to the Appeal Commissioners. The Appeal Commissioners determination on this matter is final and conclusive.

(8) If more than one taxpayer is aggrieved with a payment notice and has appealed those payment notices, the Appeal Commissioners may consolidate or hear two or more appeals together. If the Appeal Commissioners believe it is appropriate, they may decide to determine the appeal based on written submissions rather than holding a hearing.

(11) The particular subsections of section 817S that apply to payment notices will also apply to payment notices issued under this section. For example, the contents of the payment notice are as set out in section 817S(5), the provisions relating to repayment of tax with interest in section 817S(6) also apply to these payment notices and these payment notices are also, for the purposes of collection of tax, treated as if they were a demand made by the Collector General.

Relevant Date: Finance Act 2021