HMRC has published a consultation – closing 1 June – on the government’s new policy to require large businesses to notify HMRC where they have adopted an uncertain tax treatment. The consultation questions have been reproduced below.

Question 1: Do you support the government taking action to close the legal interpretation
portion of the tax gap?
Question 2: If you do not agree with the government’s proposed course of action, what
alternatives do you suggest to address the problem?
Question 3: Is there an objective alternative to using BRR+ ratings that could exempt lowrisk businesses?
Question 4: Should there be other specific exemptions from the notification requirement?
Question 5: Do you think that the triggers are sufficiently objective?
Question 6: Can you suggest ways to make them more objective and certain?
Question 7: Do you think any of the triggers will not capture the uncertain treatments they
are intended to identify?
Question 8: Are there additional triggers that would identify uncertain tax treatments that
would not be identified by these triggers?
Question 9: Which of these triggers do you consider should apply in respect of transfer
pricing uncertainties (refer paragraph 2.31), and why?
Question 10: Do you agree with the threshold of £5m for both direct and indirect taxes?
Question 11: Considering the concerns outlined about a materiality threshold, do you have
further points to support one?
Question 12: Do you agree with the proposed rules to calculate the threshold?
Question 13: If you do not agree with the proposed rules to calculate the threshold, can you
suggest an alternative calculation?
Question 14: Do you think requiring notification for each tax within scope will be easier to
comply with than a single notification?
Question 15: Do you agree with the notification being required when the return is due?
Question 16: Do you agree, for non-annual returns, with the notification being required when
the last return for a financial year is due to be filed?
Question 17: Do you agree that tax neutral inter-entity transactions should be excluded?
Question 18: Do you agree that the information required in a notification should be covered
in guidance?
Question 19: Do you agree failure to notify regarding a partnership return should be charged
on the nominated partner?
Question 20: If the penalty is not on the nominated partner, on whom should the penalty be
charged?

Question 21: Do you have any comments on the assessment of equality, and other
impacts?