{
  "url": "https://openlegislation.uk/procurement-act-2023/schedule-6/paragraph-40",
  "json_url": "https://openlegislation.uk/procurement-act-2023/schedule-6/paragraph-40.json",
  "legislation": "ukpga/2023/54",
  "legislation_title": "Procurement Act 2023",
  "legislation_url": "https://openlegislation.uk/procurement-act-2023",
  "path": "schedule/6/paragraph/40",
  "kind": "paragraph",
  "number": "40",
  "heading": "Misconduct in relation to tax",
  "text": "(1) A mandatory exclusion ground applies to a supplier if the supplier or a connected person has incurred a defeat in respect of notifiable tax arrangements they have entered into.\n(2) In this paragraph—\n“defeat” means that—\n(a)Condition A in paragraph 5 of Schedule 16 to the Finance (No. 2) Act 2017, or\n(b)Condition B in paragraph 6 of that Schedule,\nis met in respect of the arrangements (where “T” in those paragraphs is taken to mean the supplier or connected person entering into the arrangements);\n“notifiable tax arrangements” means tax arrangements in respect of which a reference number—\n(a)has been notified to the supplier or connected person under section 311A, 312 or 312ZA of the Finance Act 2004 (disclosure of tax avoidance schemes) or paragraph 22A, 23 or 23A of Schedule 17 to the Finance (No. 2) Act 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes), and\n(b)has not been withdrawn;\n“tax arrangements” has the meaning given in paragraph 3(1) of Schedule 16 to the Finance (No. 2) Act 2017.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "C",
      "label": "C1",
      "text": "Sch. 6 applied (24.2.2025) by S.I. 2013/1582, reg. 6(2), Sch. 2 Pt. 1 (as amended by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 17 (with reg. 33))"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "Sch. 6 para. 40 not in force at Royal Assent, see s. 127(2)"
    },
    {
      "type": "I",
      "label": "I2",
      "text": "Sch. 6 para. 40 in force at 24.2.2025 by S.I. 2024/716, Sch. (as amended by S.I. 2024/959, regs. 1(2), 2(7)(a))"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2023/54/schedule/6/paragraph/40",
    "retrieved_at": "2026-10-29T08:50:42.097136+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}