Finance Act, 1988
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Estimation of certain amounts. |
20.—(1) Where, in the case of a chargeable person who is chargeable to income tax for a relevant chargeable period (hereafter in this section referred to as “the first period”)— | |
(a) the total income of the chargeable person for the first period includes income from any source or sources which falls to be computed on the basis of the actual amounts receivable in the first period or where, in the first period, any deductions allowable on account of any sums paid out of the profits or gains of the chargeable person fall to be allowed as deductions in respect of the chargeable period in which they are payable, and | ||
(b) at any time before the delivery by the chargeable person of a return for the immediately succeeding chargeable period, a computation of the tax payable by the chargeable person for the first period falls to be made by the inspector or the chargeable person or an assessment for the first period is being made or amended by the inspector, | ||
the inspector or the chargeable person, as the case may be, shall make the computation, assessment or amendment, as the case may be, on the basis that— | ||
(i) the amount of income from the source or each source referred to in paragraph (a) is an amount equivalent to the amount of the income from the source or each source receivable in the chargeable period immediately preceding the first period, and | ||
(ii) the amount of the deductions referred to in paragraph (a) is an amount equivalent to the amount of those deductions in the chargeable period immediately preceding the first period. | ||
(2) Where the chargeable person gives to the inspector particulars of the correct amount of the income or deductions referred to in subsection (1) (a), the inspector shall adjust any computation or assessment by reference to the difference between the correct amount and the amount which, by reason of subsection (1), was included in the computation or assessment and any amount of tax overpaid shall be repaid and any amount of tax underpaid shall be paid. | ||
(3) An amount of tax repaid under subsection (2) shall be repaid with interest in all respects as if it were a repayment of preliminary tax under section 12 (7). Interest shall not be charged under section 550 of the Income Tax Act, 1967 , on any amount of tax underpaid under the provisions of this section unless the amount is not paid within one month of the date on which the amount of the underpayment is notified to the chargeable person by the inspector and the amount of tax so unpaid shall not be treated as part of the tax payable for the chargeable period for the purposes of section 18 (3) (b). | ||
(4) For the purposes of section 17 (1) (b), where for any relevant chargeable period an amount of income or deduction specified in an assessment or an amended assessment made on a chargeable person has been computed in accordance with the provisions of subsection (1), the inspector shall be deemed to have determined that amount by accepting without alteration of or departing from the statement or particulars with regard to that amount specified in the chargeable person's return for that chargeable period. | ||
(5) Section 528 of the Income Tax Act, 1967 , shall not apply to a chargeable person as respects any relevant chargeable period. |