Section 209AA: Protective GAAR notices, Finance Act 2013

An officer of Revenue and Customs may give a written notice (a "protective GAAR notice") to a person stating that the officer considers—

that a tax advantage might have arisen to the person from tax arrangements that are abusive, and

that, on the assumption that the advantage does arise from tax arrangements that are abusive, it ought to be counteracted under section 209.

The protective GAAR notice must be given within the ordinary assessing time limit applicable to the proposed adjustments.

But if—

a tax enquiry is in progress into a return made by the person, and

the return relates to the tax in respect of which the specified adjustments under the protective GAAR notice are made,

the protective GAAR notice must instead be given no later than the time when the enquiry is completed.

The protective GAAR notice must—

specify the arrangements and the tax advantage, and

specify the adjustments that, on the assumption that the advantage does arise from tax arrangements that are abusive, the officer proposes ought to be made.

The adjustments specified in the protective GAAR notice have effect as if they are made by virtue of section 209.

Notice of appeal may be given against the adjustments specified in the protective GAAR notice (whether or not the adjustments are also made otherwise than by virtue of section 209).

Any appeal against the specified adjustments (whether made by virtue of section 209 or otherwise) is, as a result of this subsection, stayed—

for a period of 12 months beginning with the day on which the protective GAAR notice is given, or

if a final GAAR counteraction notice is given before the end of that period, for a period ending with the day on which the final GAAR counteraction notice is given.

If, in the case of the specified adjustments (whether made by virtue of section 209 or otherwise)—

notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and

no final GAAR counteraction notice is given,

the protective GAAR notice has effect for all purposes (other than the purposes of section 212A) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with).

In any case not falling within subsection (8)—

the specified adjustments have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but

the giving of the protective GAAR notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR counteraction notice.

Section 209AA: Protective GAAR notices

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