Article 32 - Group Relief
(1) Where in any
Accounting Period a QFC Entity that is a Company or an LLP (the " Surrendering Entity") has incurred a tax loss, the amount of the loss may be set off for the purposes of corporation tax against the Chargeable Profits of a second QFC Entity that is a Company or an LLP (the " Claimant Entity") for its corresponding Accounting Period by way of a relief from corporation tax called " Group Relief".
Group Relief shall be available where the Surrendering Entity and the Claimant Entity are both members of the same Group.
Group Relief for an Accounting Period shall be allowed as a deduction against the Claimant Entity's Chargeable Profits for the period after the deduction of tax losses brought forward from previous Accounting Periods under Article 28.
Group Relief may, by election, be allowed against the Claimant Entity's Chargeable Profits before the deduction of tax losses brought forward under Article 28. An election under this paragraph shall be made in writing to the Tax Department within 18 months from the end of the Accounting Period to which the election relates.
(5) A claim to
Group Relief shall be made in accordance with the provisions of the Tax Rules (TAX 9).
(6) A payment for
Group Relief, up to the amount of that relief, shall not be taken into account in computing Chargeable Profits or tax losses of either the Surrendering Entity or the Claimant Entity.
(7) If the
Tax Department discover that any Group Relief which has been given is, or has become, excessive they may make an assessment to tax in the amount which in their opinion ought to be charged. If an assessment under this Article is made because a Claimant Entity fails, or is unable, to amend its return under TAX 9.5.5, the assessment is not out of time under Article 129 if it is made within one year from—
(a) the date on which the
Surrendering Entity gives notice of the withdrawal of consent or, if later, sends a copy of a new notice of consent, to the Claimant Entity under TAX 9.5.3; or
(b) the date on which the
Tax Department sends the Claimant Entity a copy of a notice containing their directions under TAX 9.5.4.
(8) An assessment made under this Article may be appealed under Article 133.
|Amended (as from 18th June 2014)|