Section 237C — Finance Act 2014: When a conduct notice given under section 237A(8) is “provisional”

When a conduct notice given under section 237A(8) is “provisional” 237C 1 This section applies to a conduct notice which—

a is given to a person under section 237A(8),

and b relies on a Case 3 relevant defeat.

2 The notice is “provisional” at all times when it has effect, unless an authorised officer notifies the person that the notice is no longer provisional.

3 An authorised officer must notify the person that the notice is no longer provisional if subsection (4) or (5) applies.

4 This subsection applies if—

a the condition in subsection (5)(a) is not met, and b a full relevant defeat occurs in relation to P.

5 This subsection applies if—

a two, or all three, of the relevant defeats by reference to which the conduct notice is given would not have been relevant defeats if paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”, and b the same number of full relevant defeats occur in relation to P.

6 A “full relevant defeat” occurs in relation to P if—

a a relevant defeat occurs in relation to P otherwise than by virtue of Case 3 in paragraph 9 of Schedule 34A, or b circumstances arise which would be a relevant defeat in relation to P by virtue of paragraph 9 of Schedule 34A if that paragraph had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”.

7 In determining under subsection (6) whether a full relevant defeat has occurred in relation to P, assume that in paragraph 6 of Schedule 34A (provision limiting what can amount to a further relevant defeat in relation to a person) the first reference to a “ relevant defeat ” does not include a relevant defeat by virtue of Case 3 in paragraph 9 of Schedule 34A.