Clause 31 - Exemptions for dormant companies and
Finance Bill
2:45 pm
Mr Mark Prisk (Shadow Minister, Economic Affairs; Hertford and Stortford, Conservative)
I beg to move amendment No. 9, in
clause 31, page 26, line 9, at end insert—
'5AA(1) Paragraph 1(2) above does not apply in computing for any chargeable period the profits and losses of a potentially
advantaged person if that person is a company which is dormant but which does not satisfy the condition in paragraph 5A(2).
(2) Sub-paragraph (1) above does not apply in respect of any accounting period of a company if the Board gives the company a notice under this sub-paragraph requiring the company to compute the profits and losses of that accounting period in accordance with paragraph 1(2) above.
(3) A notice may be given in accordance with sub-paragraph (2) above only if the Board has reasonable grounds to believe that in that accounting period the company has been party to any transaction in respect of which provision has been made or imposed otherwise than for bona fide commercial reasons or as part of a scheme or arrangements for the avoidance of tax.
(4) In this paragraph ''dormant'' has the same meaning as in section 249AA of the Companies Act 1985 (see subsections (4) to (7) of that section).'.