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Paragraph 16

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

This paragraph applies for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons resulting in an avoidance of CBAM.

(2)

An officer of Revenue and Customs may make a direction naming any person if they are satisfied that—

(a)

the person is importing CBAM goods into the United Kingdom in the course of a business,

(b)

the activities in the course of which the person does so form only part of certain activities, the other activities being carried on concurrently or previously (or both) by one or more other persons,

(c)

the activities carried on by those persons have been, or are, artificially separated, having regard to whether the persons carrying on those activities are connected within the meaning of section 1122 of CTA 2010 (“connected” persons), and

(d)

if all the activities of those persons were taken into account, a single person carrying on that business would at the time of the direction be required to register under paragraph 2.

(3)

The effect of a direction under sub-paragraph (2) is that for the purposes of this Part of this Act—

(a)

the persons named in the direction are to be treated as a single taxable person (“the taxable person”) carrying on the activities of a business described in the direction,

(b)

the taxable person is deemed to have registered on the date of the direction or on such earlier or later date as may be specified in the direction—

(i)

in the name of one of the persons named in the direction nominated jointly by them in writing to the officer of Revenue and Customs who made the direction within the period of 14 days beginning with the date of the direction, or

(ii)

if no such name is nominated, in such name as may be determined by the officer;

(c)

the importation of CBAM goods by, or on behalf of, a person named in the direction in the course of the activities carried on by the taxable person is to be treated as the importation of CBAM goods in the course of a business by the taxable person;

(d)

each person named in the direction is jointly and severally liable for any CBAM due from the taxable person;

(e)

any failure by the taxable person to comply with any requirement imposed by or under this Part of this Act is to be treated as a failure by each person named in the direction severally.

(4)

The earliest date a direction may specify under sub-paragraph (3)(b) is the date on which the persons named in the direction would, if they were treated as a single taxable person on that date, have first triggered registration under paragraph 2.

(5)

Sub-paragraph (6) applies where, after a direction is made under sub-paragraph (2), it appears to an officer of Revenue and Customs that—

(a)

a person who was not named in the direction is importing CBAM goods in the course of activities which should be regarded as part of the activities of the business described in the direction, or

(b)

a person who is named in the direction should no longer be named in the direction.

(6)

The officer of Revenue and Customs may by direction modify the earlier direction so that—

(a)

it names the person mentioned in sub-paragraph (5)(a), or

(b)

the person mentioned in sub-paragraph (5)(b) is removed from the earlier direction (as the case may be).

(7)

A modification under sub-paragraph (6)(a) comes into force on—

(a)

the date on which the person began to import CBAM goods in the course of activities which should be regarded as part of the activities of the business described in the direction, or

(b)

if later, the date on which the single taxable person referred to in the earlier direction is deemed to have registered.

(8)

A modification under sub-paragraph (6)(b) comes into force on the date specified in the direction.

(9)

A direction under sub-paragraph (2), and any determination under sub-paragraph (3)(b)(ii), must be given to each person named in the direction.

(10)

A direction under sub-paragraph (6)(a) must be given to each person named in the earlier direction as modified.

(11)

A direction under sub-paragraph (6)(b) must be given to—

(a)

each person named in the earlier direction as modified, and

(b)

the person being removed from the earlier direction.

(12)

A registered person is to be treated as no longer being a registered person in their own right from such time as they begin to form part of a single taxable person under a direction under this paragraph.