Taxes Consolidation Act 1997 section 427

Information as to arrangements for transferring relief, etc

Section 427 empowers an inspector to require written information from a company where there are grounds to suspect that certain arrangements exist, or have existed, which are material to a claim for group relief, leasing relief, or partnership loss relief.

• Where a company makes a claim for group relief, leasing relief, or partnership loss relief, an inspector who suspects that relevant arrangements may exist can serve a formal written notice requiring a declaration and/or information within a minimum of 30 days.
• Relevant arrangements include: varying an equity holder's entitlement to profits or assets (section 417(3)); switching a company between groups or consortia (section 424(3) or (4)); a successor company taking over leasing obligations (section 425(1)(c)); and certain payments involving a company that is also a partnership member (section 426(2)).
• Where group relief is at issue, the notice may be served on the surrendering company (the company giving up the relief) as well as, or instead of, the company making the claim.
• Where partnership loss relief is at issue, the notice may be served on the other partners as well as, or instead of, the company claiming the relief.