Introduction Details of the Schedule Part 2 – Collection and Management of Tax
40.Paragraph 16 provides that the Commissioners for HM Revenue & Customs (HMRC) are responsible for the collection and management of BPT.
41.Paragraph 17 provides that BPT is payable on or before 31 August 2010.
42.Paragraph 18 imposes an obligation on a taxable company to deliver a return to HMRC for the purposes of BPT on or before 31 August 2010.
43.Paragraph 19 provides that HMRC may publish requirements as to the content, form and manner of delivery of a return and requirements as to the documents to be delivered with the return. The return must include a self-assessment of the BPT payable by the taxable company and a declaration by the person making the return that to the best of their knowledge the return is correct and complete.
44.Paragraph 20 provides that where a return does not include a self-assessment, HMRC can make an assessment on the taxable company’s behalf based on the information in the return. Any such assessment is to be treated as a self-assessment and as included in the return.
45.Paragraphs 21(1)-(3) provide that taxable companies may amend their returns. Amendments are to be made by notice to HMRC in such form and containing such information as HMRC may reasonably require. The deadline for amendments is 31 August 2011.
46.Paragraph 21(4) provides that paragraph 21(1) does not allow a taxable company to correct its return merely because an amount determined under paragraph 7(2), 12(2) or 13(3) differs from the amount actually paid, provided or loaned.
47.Paragraph 22 provides for HMRC to amend a return to correct obvious errors or mistakes in the return by a notice to the taxable company (although the company can reject this notice within 30 days of the date notice was given). A correction may not be made more than nine months after the day on which the return was delivered, or if a correction is made under paragraph 21, the date of the amendment made under that paragraph.
48.Paragraph 23 provides that HMRC may commence an enquiry into a return on or before 31 August 2011 (if the return is submitted on or before 31 August 2010) or up to and including the 31 January, 30 April, 31 July or 31 October next following the first anniversary of the day on which the return was delivered, if it is submitted after 31 August 2010. The enquiry extends to anything contained in the return, or required to be contained in the return and certain provisions of Schedule 18 to the Finance Act (FA) 1998 apply for the purposes of an enquiry into a return as they do for an enquiry into a company tax return.
49.Paragraph 24 provides for HMRC to make a determination of the amount of BPT payable if a taxable company has not made a return on or before 31 August 2010. This must be served on the taxable company stating the date on which it is given and will be the amount payable by the taxable company unless it is superseded by a relevant assessment. If HMRC have started proceedings for recovery of BPT before the determination is superseded by a relevant assessment the proceedings may continue for the recovery of the amount of tax shown on the assessment which has not been paid. A relevant assessment is one included in a return delivered by the taxable company within 12 months of the date of the determination, or made by HMRC under paragraph 20 following delivery of a return. A determination may not be made after 31 August 2013.
50.Paragraphs 25 to 28 provide for HMRC to make a discovery assessment.
51.Paragraph 25 applies where HMRC discovers, in respect of a taxable company, that an amount of BPT that should have been assessed has not been assessed, that an assessment is insufficient or that a repayment has been made that should not have been repaid. In these circumstances, HMRC may make an assessment (a “discovery assessment”) of the amount that in their opinion should be charged to make good the loss of BPT. A discovery assessment may only be made where condition A (see paragraph 25(4)) or condition B (see paragraph 24(5)) is met.
52.Paragraph 26 provides that a discovery assessment must be served on the taxable company and must include the date that it is given and the time limit for an appeal.
53.Paragraphs 27(1)-(4) provide that a discovery assessment may not be made after the relevant deadline. This is:
	5 April 2030 if the situation resulted from deliberate action or careless failure to deliver a return on or before 31 August 2010;
	5 April 2016 if the situation resulted from the company acting carelessly (subject to paragraph 27(2)(b)); and
	5 April 2014 in all other cases.
54.Paragraph 27(5) defines for the purposes of paragraph 27 that “the situation” means the one discovered by HMRC and provides that a reference to a taxable company is treated as including a reference to a person acting on its behalf.
55.Paragraph 28 provides that a taxable company may appeal against a discovery assessment, in writing to the officer who gave notice and within 30 days of the date the notice of assessment was given and that an objection against a discovery assessment on the grounds that paragraph 25, 26 or 27 was not complied with must be made by an appeal against the assessment.
56.Paragraph 29 provides that HMRC may publish requirements regarding the method or methods to be used by taxable companies for paying BPT and that Part 6 of the Taxes Management Act 1970 (TMA) (collection and recovery) applies for BPT as it applies to corporation tax.
57.Paragraph 30 provides for interest on late payments and repayments.
58.Paragraph 30(1) provides that paragraph 30 will apply if a Treasury order is made to bring sections 101 and 103 of FA 2009 into force. Section 101 sets out the general proposition for applying late payment interest to any sum due under or by virtue of an enactment to HMRC. Section 103 provides that the late payment and repayment rates of interest shall be specified in regulations.
59.Paragraph 30(2) provides that paragraph 4(1) of Schedule 53 to FA 2009 (special provision: late payment interest start date) has effect as if reference were also made to BPT. The interest start date in respect of BPT assessed and recoverable under paragraph 25(1)(c) of this Schedule is 31 August 2010.
60.Paragraph 30(3) provides that interest charged under section 101 of FA 2009 on BPT, may be enforced as if it were an amount of BPT.
61.Paragraph 31 makes provisions for overpaid BPT.
62.Paragraph 31(1)-(3) provide that paragraphs 50 to 51G of Schedule 18 to FA 1998 (overpaid tax) apply to BPT assessable for the chargeable period. The provisions will apply in the same way as they do for corporation tax assessable for an accounting period, with minor modifications to reflect differences between the two taxes. A claim under paragraph 51 of Schedule 18 in respect of BPT may not be made after 31 August 2014 and the relevant restrictions for making a discovery assessment are the conditions and time limits imposed by paragraphs 25(3) and 27 of this Schedule.
63.Paragraph 31(4) provides that that paragraph 31(1) does not allow a taxable company to make a claim under paragraph 51 of Schedule 18 merely because an amount determined under paragraphs 7(2), 12(2) or 13(3) of this Schedule differs from the amount actually paid, provided or loaned.
64.Paragraphs 32 and 33 provide for appeals and other proceedings.
65.Paragraph 32 provides that Part 5 of TMA (appeals and other proceedings) applies to an appeal against a discovery assessment to BPT in the same way as it applies to an appeal against an assessment to corporation tax and that references in Part 5 to tax are to be read as applying to BPT.
66.Paragraph 33 provides that where certain provisions of other Acts are applied by this Part of this Schedule they are to be read in a way that is consistent with the application of BPT to those provisions.
67.Paragraphs 34 and 35 impose an obligation to keep records.
68.Paragraph 34 provides that each taxable company must keep any records that it may need to establish and verify the amount of BPT it is liable to pay and to deliver a correct and complete return. These and any other relevant records (as defined in paragraph 34(2)) must be maintained until 31 August 2016. Records, or the information contained within those records, may be preserved in any form and by any means.
69.Paragraph 35 provides that a taxable company that does not comply with the obligations in paragraph 34 of this Schedule is liable to a penalty not exceeding £3,000. Sections 100 to 102 of TMA apply to a penalty under paragraph 34 of this Schedule as they apply to section 12B(5) of that Act. Sections 100 to 102 TMA set out procedures for determining the amount of any penalty, provide rights of appeal against any penalty and provide a power for HMRC to mitigate penalties in appropriate circumstances.
70.Paragraph 36 applies Schedule 36 to FA 2008 (information and inspection powers) to BPT and provides that references in paragraph 21 of that Schedule to “the chargeable period” and notice of enquiry” are to be read as reference to the corresponding provisions relating to BPT.
71.Paragraphs 37 to 39 provide for penalties.
72.Paragraph 37 provides that the provisions of Schedule 24 to FA 2007 (penalties for errors) apply to BPT and that references in Schedule 24 to a tax period are to be read as a reference to the chargeable period within the meaning of this Schedule.
73.Paragraph 38 provides that the provisions of Schedule 55 to FA 2009 (penalties for failure to make payments on time etc) apply to BPT whether or not that Schedule is in force for other purposes.
74.Paragraph 39 provides that Schedule 56 to FA 2009 (penalty for failure to make payments on time) applies to BPT as if references to BPT were inserted into the relevant place in that Schedule whether or not that Schedule is in force for other purposes.
75.Paragraphs 40 to 42 contain miscellaneous provisions.
76.Paragraph 40(1) provides that the provisions in TMA about the responsibility of company officers; the loss, destruction or damage to assessments, returns, etc; the want of form or errors in assessment not to invalidate assessments, etc; and the delivery and service of documents apply to BPT.
77.Paragraphs 40(2) provides that the application of section 115 of TMA (delivery and service of documents) in relation to the delivery of BPT returns is subject to the requirements of paragraph 19(1) of this Schedule.
78.Paragraph 41 provides that Chapter 6 of Part 22 of the Corporation Tax Act 2010 (collection of tax from UK representatives of non-UK resident companies) applies to Part 2 of this Schedule as it applies to corporation tax.
79.Paragraph 42 provides the sections 118(5) to 118(7) (interpretation) of TMA apply for the purposes of BPT.