Finance (No. 2) Act 2023 · Updated to 29 Dec 2023 · Chapter 14
212. Assessments and additional assessments in certain cases under Part XI
Feedback & supportWhere for any Financial Year it appears to him that no or no sufficient assessment has been made on a
Financial Year
“Financial Year” means an accounting period with respect to which the Ultimate Parent Entity of the Multinational Enterprise Group prepares its Consolidated Financial Statements and in the case of Consolidated Financial Statements as defined in paragraph (d) of the definition of “Consolidated Financial Statements”, Financial Year means the calendar year;
Constituent Entity chargeable to tax, the Director General may in that year or within five years after its expiration make an assessment or additional assessment, as the case may be, in respect of that Constituent Entity in the amount of
Constituent Entity
“Constituent Entity” means— (a) any Entity that is included in a Group; or (b) any Permanent Establishment of a Main Entity that is within paragraph (a) and which is treated as separate from the Main Entity and any other Permanent Establishment of that Main Entity, but does not include an Excluded Entity;
Domestic Top-up Tax or Multinational Top-up Tax in which, according to the best of the Director General’s judgment, the assessment with respect to that Constituent Entity ought to have been made for that year.
Domestic Top-up Tax
“Domestic Top-up Tax” means tax as provided under section 159;
Where the Director General discovers that the whole or part of any tax repaid to a Constituent Entity (otherwise than in consequence of an agreement come to with respect to an assessment pursuant to subsection 101(2) or in consequence of an assessment having been determined on appeal) has been repaid by mistake whether of fact or law, the
Director General may make an assessment in respect of that
Constituent Entity in the amount of that tax or that part of that tax, as the case may be.
An assessment under subsection (2) shall not be made—
if the repayment was in fact made on the basis of, or in accordance with, the practice of the Director
General generally prevailing at the time when the repayment was made; or
Finance (No. 2)
in respect of any tax, more than five years after the tax has been repaid.
Where it appears to the Director General that—
any form of fraud or wilful default has been committed by or on behalf of any Constituent Entity; or
any Constituent Entity has been negligent, in connection with or in relation to tax, he may at any time make an assessment in respect of that Constituent Entity for any Financial Year for the purpose of making good any loss of tax attributable to the fraud, wilful default or negligence in question.
Deemed assessment on amended return of Constituent