CTM97570 - CTSA: group payment arrangements: late filing penalties

If any company in a group payment arrangement:

• files its return late enough to incur a tax-related penalty under FA98/SCH18/PARA18 (see CTM94000 onwards),

• there is a payment shortfall in the arrangement at the date on which the penalty is incurred,

the apportionment that the nominated company makes cannot relieve a late filing company of its liability to the tax-related penalty if there was an overall shortfall in the payments made under the group payment arrangement.

The payments made under a group payment arrangement are apportioned:

• for the purpose of calculating such a penalty only,

• without prejudice to the actual allocation of the money to the individual company records,

COTAX cannot carry out this apportionment. If a company within a group payment arrangement is liable to a tax-related penalty you need to review carefully how COTAX has calculated the penalty. (See the On-line Company Tax Manual (COM) in the Penalties business area for guidance.)