Taxes Consolidation Act 1997 section 817DA

References to "specified description" — classes of transaction for purposes of that expression

Section 817DA defines the specified descriptions of transaction that trigger the mandatory disclosure obligations under Chapter 3.

• A transaction falls within a specified description if it meets any one of the tests set out in subsections (2) to (10), which cover confidentiality, premium fees, standardised tax products, loss schemes for individuals and companies, employment schemes, income-to-capital conversions, income-to-gift conversions, and discretionary trusts.
• The confidentiality and premium fee descriptions are broad, hypothetical tests that apply to both promoter-based and in-house schemes, while the standardised tax product description applies only to promoter-based schemes that use substantially standardised documentation and steps.
• Certain specified descriptions — standardised tax products, employment schemes, income-to-capital schemes, and discretionary trusts — are subject to exclusions set out in the Schedule to regulations made under section 817Q, which remove routine tax planning from the disclosure net.
• The tests are designed to capture innovative, aggressive, or unusual arrangements rather than ordinary tax planning that relies on statutory reliefs used for their intended purpose.