# The Authorised Investment Funds (Tax) Regulations 2006, Regulation 69Z5: Breach of the corporate ownership condition


(1) This regulation applies if an open-ended investment company to which this Part applies is in breach of the corporate ownership condition.
(2) If there is a breach which is caused by the action of a shareholder in the company and the company has not taken reasonable steps to prevent the breach (so that, accordingly, there is a charge to corporation tax under regulation 69Z12) (a “specified breach”), this Part shall continue to apply to the company despite the breach (but see paragraph (3) and regulation 69Z8).
(3) If there are three specified breaches in a period of ten years beginning with the first day of the accounting period in which the first specified breach occurs, the Commissioners may give a termination notice to the company.

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Source: https://www.legislation.gov.uk/uksi/2006/964/regulation/69Z5 (the official version)
Page: https://openlegislation.uk/authorised-investment-funds-tax-regulations-2006/regulation-69Z5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.