28.4.5.1 Changes in taxation or in the Contractor's accounting policies, such as depreciation are not considered to be Refinancings.4 However, Authorities and their advisers must take care to ensure that the tax and accounting assumptions within bids are not unduly conservative or likely to change, for example under codes of practice already announced by the professional accounting authorities, but not yet implemented or by reference to precedents already agreed with HMRC which may be applicable to the Contractor.
28.4.5.2 Whilst they are not regarded as refinancings, changes in taxation or in the Contractor's accounting policies, which involve amendments to Project Documents to which the Authority is a party, or otherwise require its consent under separate provisions in the Contract, will quite clearly be subject to the Authority's approval in their own right at the time and subject to the usual critical examination as to their likely impact on risk, incentives and value for money. If the Authority is in any doubt about the implications of such proposed changes, they should consult their respective Departmental Private Finance Unit or HMT.
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4 See Section 16.7 (Changes in Tax Law) for a discussion of how changes in taxation should be addressed in the Contract.