Arbitrage: practical guidance: case identification and working of enquiries: Running enquiries into the self assessment of a company to which the arbitrage legislation applies
Normal enquiry principles apply, but with the major difference that for the arbitrage legislation to apply to a company, a Notice must first be issued to the company by the arbitrage team in CTIAA, Business International to “switch on” the legislation (see INTM596510). However, a Notice does not need to be issued before you can start an enquiry.
The type of documentation which would ordinarily need to be examined as part of an arbitrage enquiry could include the following:
- All legal documents brought into existence to give effect to the transactions forming the qualifying scheme.
- All minutes of Board or Committee meetings, briefing papers, reports, notes or working papers, correspondence including faxes, e-mails, notes of meeting and telephone conversations between company personnel and any other person referring directly or indirectly to the funding structure and the deductibility of interest on the loans in the UK.
- All internal correspondence including faxes, e-mails, notes of meeting and telephone conversations and all other communications between company personnel referring directly or indirectly to all transactions forming the qualifying scheme.
- All material from or shown by advisors, promoters or intermediaries in connection with all aspects of the qualifying scheme.
- Copies of all planning papers (including tax planning papers)/briefing documents and advice presented to or considered by the Boards of the relevant companies in connection with the funding strategy adopted.
- A copy of the group’s treasury procedures/policy document or manual governing the funding of operations and capital employed.
It is essential to establish the facts of the case as early as possible in the enquiry, and it is recommended as a first step that the company be asked to provide information in response to the questions and information requests as set out in the arbitrage clearance applications see (INTM595060 and INTM595070). This should provide sufficient information to enable your International Issues Manager to consider whether a submission should be made to the arbitrage team in CTIAA, Business International.