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  1. The Regulatory Authority may make an assessment that a Licensee has not met the Economic Substance Test during any Financial Year of the Licensee.
  2. No assessment will be done six (6) years after the end of the Financial Year to which the determination relates.
  3. The time bar period shall not apply if the Regulatory Authority is not able to make a determination within the six (6) year period by reason of any deliberate misrepresentation or negligent or fraudulent action by the Licensee or by any other person.
  4. In relation to a High-Risk IP Licensee, the Regulatory Authority must determine that the Economic Substance Test is not met during a Financial Year unless the Licensee provides sufficient information to satisfy the Regulatory Authority that the Test is met.

Read: Applicability of Economic Substance Test

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The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.

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