Office of Public Sector Information
PART III continued CHAPTER V continued
(3) The requirements of this subsection are satisfied if—
(a) arrangements are made by the company for securing the payment of the tax which is or will be payable by it in respect of periods beginning before the relevant time; and
(b) those arrangements as so made are approved by the Board for the purposes of this subsection.
(4) If any question arises as to the amount which should be regarded for the purposes of subsection (3) above as the amount of the tax which is or will be payable by the company in respect of periods beginning before the relevant time, that question shall be referred to the Special Commissioners, whose decision shall be final.
(5) If any information furnished by the company for the purpose of securing the approval of the Board under subsection (3) above does not fully and accurately disclose all facts and considerations material for the decision of the Board under that subsection, any resulting approval of the Board shall be void.
(6) In this section “Treasury consent” means a consent under section 765 of the Taxes Act 1988 (restrictions on the migration etc. of companies) given for the purposes of subsection (1)(a) of that section.
(7) In this section and sections 131 and 132 below any reference to the tax payable by a company includes a reference to—
(a) any amount of tax which it is liable to pay under regulations made under section 203 of the Taxes Act 1988 (PAYE);
(b) any income tax which it is liable to pay in respect of payments to which section 350(4)(a) of that Act (company payments which are not distributions) applies;
(c) any amount representing income tax which it is liable to pay under—
(i) regulations made under section 476(1) of that Act (building societies);
(ii) section 479 of that Act (interest paid on deposits with banks etc.); or
(iii) section 555 of that Act (entertainers and sportsmen);
(d) any amount which it is liable to pay under section 559(4) of that Act (sub-contractors in the construction industry); and
(e) any amount which it is liable to pay under paragraph 4 of Schedule 15 to [1973 c. 51.] Finance Act 1973 (territorial extension of charge of tax).
(8) In this section and section 132 below any reference to the tax payable by a company in respect of periods beginning before any particular time includes a reference to any interest on the tax so payable, or on tax paid by it in respect of such periods, which it is liable to pay in respect of periods beginning before or after that time.
(9) In this section and sections 131 and 132 below any reference to a provision of the Taxes Act 1988 shall be construed, in relation to any time before 6th April 1988, as a reference to the corresponding enactment repealed by that Act.
(10) This section and sections 131 and 132 below shall be deemed to have come into force on 15th March 1988.
(1) If a company fails to comply with section 130 above at any time, it shall be liable to a penalty not exceeding the amount of tax which is or will be payable by it in respect of periods beginning before that time and which has not been paid at that time.
(2) If, in relation to a company (“the migrating company”), any person does or is party to the doing of any act which to his knowledge amounts to or results in, or forms part of a series of acts which together amount to or result in, or will amount to or result in, the migrating company failing to comply with section 130 above at any time and either—
(a) that person is a person to whom subsection (3) below applies; or
(b) the act in question is a direction or instruction given (otherwise than by way of advice given by a person acting in a professional capacity) to persons to whom that subsection applies,
that person shall be liable to a penalty not exceeding the amount of tax which is or will be payable by the migrating company in respect of periods beginning before that time and which has not been paid at that time.
(3) This subsection applies to the following persons, namely—
(a) any company which has control of the migrating company; and
(b) any person who is a director of the migrating company or of a company which has control of the migrating company.
(4) In any proceedings against any person to whom subsection (3) above applies for the recovery of a penalty under subsection (2) above—
(a) it shall be presumed that he was party to every act of the migrating company unless he proves that it was done without his consent or connivance; and
(b) it shall, unless the contrary is proved, be presumed that any act which in fact amounted to or resulted in, or formed part of a series of acts which together amounted to or resulted in, or would amount to or result in, the migrating company failing to comply with section 130 above was to his knowledge such an act.
(5) References in this section to a company failing to comply with section 130 above are references to the requirements of subsections (2) and (3) of that section not being satisfied before the company ceases to be resident in the United Kingdom otherwise than in pursuance of a Treasury consent; and in this subsection “Treasury consent” has the same meaning as in that section.
(6) In this section and section 132 below “director”, in relation to a company—
(a) has the meaning given by subsection (8) of section 168 of the Taxes Act 1988 (read with subsection (9) of that section); and
(b) includes any person falling within subsection (5) of section 417 of that Act (read with subsection (6) of that section);
and any reference to a person having control of a company shall be construed in accordance with section 416 of that Act.
(1) This section applies where—
(a) a company (“the migrating company”) ceases to be resident in the United Kingdom at any time; and
(b) any tax which is payable by the migrating company in respect of periods beginning before that time is not paid within six months from the time when it becomes payable.
(2) The Board may, at any time before the end of the period of three years beginning with the time when the amount of the tax is finally determined, serve on any person to whom subsection (3) below applies a notice—
(a) stating particulars of the tax payable, the amount remaining unpaid and the date when it became payable; and
(b) requiring that person to pay that amount within thirty days of the service of the notice.
(3) This subsection applies to the following persons, namely—
(a) any company which is, or within the relevant period was, a member of the same group as the migrating company; and
(b) any person who is, or within the relevant period was, a controlling director of the migrating company or of a company which has, or within that period had, control over the migrating company.
(4) Any amount which a person is required to pay by a notice under this section may be recovered from him as if it were tax due and duly demanded of him; and he may recover any such amount paid by him from the migrating company.
(5) A payment in pursuance of a notice under this section shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.
(6) In this section—
“controlling director”, in relation to a company, means a director of the company who has control of it;
“group” has the meaning which would be given by section 272 of the Taxes Act 1970 if in that section references to residence in the United Kingdom were omitted and for references to 75 per cent. subsidiaries there were substituted references to 51 per cent. subsidiaries;
“the relevant period” means—
where the time when the migrating company ceases to be resident in the United Kingdom is less than twelve months after 15th March 1988, the period beginning with that date and ending with that time;
in any other case, the period of twelve months ending with that time.
(1) After subsection (1) of section 44 of the [1970 c. 9.] Taxes Management Act 1970 (General Commissioners) there shall be inserted—
“(1A) Subject to subsections (1B) and (2) below, the Board may direct that, notwithstanding the said rules, proceedings before the General Commissioners under the Taxes Acts of any description specified in the direction shall be brought before the General Commissioners for the division so specified in relation to proceedings of that description.
(1B) A direction under subsection (1A) above shall have effect subject to the provisions referred to in the last paragraph of Schedule 3 to this Act and shall not apply to any proceedings if—
(a) the inspector has not served on the other party a notice stating the effect of the direction in relation to those proceedings;
(b) that party has served on the inspector, within thirty days of the service of the inspector’s notice, a notice objecting to the direction so applying; or
(c) in the case of an appeal, that party has elected under rule 3 or 5 of the said rules for the place where he ordinarily resides.”
(2) For subsection (2) of that section there shall be substituted—
“(2) Where—
(a) the parties to any proceedings under the Taxes Acts which are to be heard by any General Commissioners have agreed, whether before or after the institution of the proceedings, that the proceedings shall be brought before the General Commissioners for a division specified in the agreement; and
(b) in the case of an agreement made before the time of the institution of the proceedings, neither party has determined that agreement by a notice served on the other party before that time,
the proceedings shall be brought before the General Commissioners for the division so specified, notwithstanding the said rules and any direction under subsection (1A) above.”
(3) The amendment made by subsection (1) above shall have effect in relation to proceedings instituted on or after 1st January 1989; and the amendment made by subsection (2) above shall have effect in relation to proceedings instituted after the passing of this Act.
(1) In section 2 of the [1970 c. 9.] Taxes Management Act 1970 (General Commissioners)—
(a) in subsection (1), after the words “who shall act for the same separate areas in Great Britain as heretofore” there shall be inserted the words “or for the separate areas in Northern Ireland defined by an order made by the Lord Chancellor”, and
(b) in subsection (2), after the words “England and Wales” there shall be inserted the words “or Northern Ireland”.
(2) Section 58(1) of that Act (references in Taxes Acts to General Commissioners to be taken in relation to proceedings in Northern Ireland as references to Special Commissioners or, where section 59 applies, a county court) and section 59 of that Act (right in Northern Ireland to bring before a county court certain proceedings which in Great Britain may be brought before General Commissioners) shall cease to have effect.
(3) In sections 260(3) and 281(4) of the Taxes Act 1988 (and the corresponding enactments repealed by that Act) and in section 11(4) of the Taxes Act 1970 (Special Commissioners to act instead of General Commissioners where taxpayers not resident in Great Britain) for the words “Great Britain” there shall be substituted the words “the United Kingdom”.
(4) This section and section 135 below shall come into force on such day as the Lord Chancellor may by order made by statutory instrument appoint.
(5) Subject to the following provisions of this section, the preceding provisions of this section and section 135(2) below shall not affect any proceedings instituted before the day appointed under subsection (4) above.
(6) Subject to subsection (8) below, where—
(a) before the day appointed under subsection (4) above proceedings in Northern Ireland have been instituted before the Special Commissioners but not determined by them, and
(b) the proceedings might have been instituted before the General Commissioners if they had been proceedings in Great Britain,
they shall be transferred to the General Commissioners; and subsection (3) of section 58 of the [1970 c. 9.] Taxes Management Act 1970 shall apply for the purposes of this subsection as for those of that section (the reference to proceedings in Great Britain being construed accordingly).
(7) Section 44 of that Act shall apply in relation to proceedings transferred to the General Commissioners under subsection (6) above as it applies to proceedings instituted before them; and in the case of an appeal so transferred a notice of election under rule 3 or 5 of Schedule 3 to that Act may be given at any time before the end of the period of thirty days beginning with the day appointed under subsection (4) above.
(8) Subsection (6) above shall not apply in relation to proceedings if—
(a) before the end of that period an election that the proceedings be not transferred is made by any of the parties to the proceedings and written notice of the election is given to the other parties to the proceedings, or
(b) they are proceedings under section 100 of the Taxes Management Act 1970 (recovery of penalties);
but subsections (5A) to (5E) of section 31 of that Act shall apply in relation to an election under paragraph (a) of this subsection in respect of an appeal against an assessment or the decision of an inspector on a claim as they apply in relation to an election under subsection (4) of that section.
(9) The Lord Chancellor may by order made by statutory instrument make provision supplementing or modifying the effect of subsections (5) to (8) above; and an order under this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) In section 58 of the Taxes Management Act 1970 after subsection (2) (cases stated in proceedings in Northern Ireland to be cases for the opinion of the Court of Appeal in Northern Ireland) there shall be inserted—
“(2A) Where in proceedings in Northern Ireland an application is made for a case to be stated by the Commissioners under section 56 of this Act the case must be settled and sent to the applicant as soon after the application as is reasonably practicable.”
(2) For subsection (3) of that section there shall be substituted—
“(3) For the purposes of this section—
(a) “proceedings in Northern Ireland” means proceedings as respects which the place given by the rules in Schedule 3 to this Act is in Northern Ireland;
(b) proceedings under section 102, 113(5), 260(3), 281(4), 343(10) or 783(9) of the principal Act (or the corresponding enactments repealed by that Act), section 11 of or paragraph 22 of Schedule 7 to the [1970 c. 10.] Income and Corporation Taxes Act 1970 or section 81 of the [1968 c. 3.] Capital Allowances Act 1968 (proceedings to which more than one taxpayer is a party) shall be proceedings in Northern Ireland if the place given by the rules in Schedule 3 to this Act in relation to each of the parties concerned in the proceedings is in Northern Ireland,
and sections 21 and 22 of the [1954 c. 33 (N.I.).] Interpretation Act (Northern Ireland) 1954 shall apply as if references in those provisions to any enactment included a reference to this section.”
Finance Act 1988