Finance Act, 1995

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Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

31.—As respects the year 1995-96 and subsequent years of assessment, section 18 of the Finance Act, 1988 , is hereby amended—

(a) in paragraph (a) of subsection (1), by the insertion after “income tax” of “and subject to subsection (6)”,

(b) in subsection (2) by the substitution of the following for paragraph (b):

“(b) where the assessment is made on or after that date—

(i) if the chargeable period is a year of assessment for income tax, on or before the specified due date for that year of assessment,

(ii) if the chargeable period is a year of assessment for capital gains tax, on or before the specified return date for the chargeable period or, if later, not later than one month from the date on which the assessment is made, and

(iii) if the chargeable period is an accounting period of a company, not later than one month from the date on which the assessment is made.”,

(c) in paragraph (b) of subsection (3)—

(i) by the deletion of “or” in subparagraph (i), by the substitution of “period, or” for “period:” at the end of subparagraph (ii) and by the insertion of the following subparagraph after subparagraph (ii) but before the first proviso thereto:

“(iii) in the case of an assessment to income tax for the said chargeable period being a year of assessment made on a chargeable person to whom subsection (6) applies, other than a chargeable person in relation to whom the amount of income tax payable or, taken in accordance with paragraph (I) of the first proviso to this subparagraph to be payable, for the pre-preceding chargeable period was nil, 105 per cent, of the income tax payable for the pre-preceding chargeable period:”,

(ii) in the first proviso to subparagraph (ii)—

(I) by the substitution of “subparagraphs (ii) and (iii)” for “this subparagraph”,

(II) by the substitution of the following for paragraph (I):

“(I) subject to subsection (3A), where the chargeable person was not a chargeable person for the immediately preceding chargeable period or for the pre-preceding chargeable period, the income tax payable for the immediately preceding chargeable period or the pre-preceding chargeable period, as the case may be, shall be taken to be nil, and”,

(III) in paragraph (II), by the insertion after “the immediately preceding chargeable period” of “or, in the case of a chargeable person to whom subsection (6) applies, the pre-preceding chargeable period,”,

and

(iii) in the second proviso to subparagraph (ii)—

(I) by the substitution of “subparagraphs (ii) and (iii)” for “this subparagraph”, and

(II) by the insertion in both paragraphs (a) and (b) after “the immediately preceding chargeable period” of “or, in the case of a chargeable person to whom subsection (6) applies, the pre-preceding chargeable period,” and by the insertion in both paragraphs (a) and (b) after “that immediately preceding chargeable period” of “or the pre-preceding chargeable period, as the case may be,”,

(d) by the insertion after subsection (3) of the following subsection:

“(3A) Where for a chargeable period, being a year of assessment for income tax, a chargeable person is assessed to tax in accordance with section 194 of the Income Tax Act, 1967 , and that person was not so assessed for the preceding chargeable period or for the pre-preceding chargeable period or for both of those periods either because the person's spouse was so assessed for either or both of those periods or because the person and the person's spouse were assessed to tax in accordance with section 193 or section 197 of the Income Tax Act, 1967 , for either or both of those periods, subparagraphs (ii) and (iii) of paragraph (b) of subsection (3) and paragraph (I) of the first proviso to those subparagraphs shall apply as if the person and the person's spouse had elected in accordance with section 195 or section 195B of the Income Tax Act, 1967 , as the case may be, for the person to be assessed to tax in accordance with the said section 194 for any of those periods for which the person or the person's spouse were entitled to so elect or would have been so entitled if section 195B of the Income Tax Act, 1967 , had applied.”,

and

(e) by the addition after subsection (5) of the following subsections:

“(6) (a) Preliminary tax appropriate to a relevant chargeable period where the chargeable period is a year of assessment for income tax shall be due and payable in the case of a chargeable person to whom paragraph (b) applies in equal monthly instalments throughout the calendar year, or a part thereof, in which the due date for the payment of that preliminary tax in accordance with paragraph (a) of subsection (1) falls and the Collector-General shall debit the bank account of that chargeable person with such instalments on the 9th day of each month in that year or part thereof, as the case may be.

(b) This paragraph applies to a chargeable person who authorises the Collector-General to collect preliminary tax by the debiting of the bank account of the said person in accordance with paragraph (a) and who complies with such conditions as the Collector-General may reasonably impose to ensure that an amount of preliminary tax payable by a chargeable person for a chargeable period will be paid by that chargeable person in accordance with this subsection on or before the 9th day of December in the year of assessment to which the preliminary tax relates by virtue of paragraph (a) of subsection (1).

(c) Notwithstanding paragraph (a), the Collector-General may at any time agree to alter the amount of preliminary tax to be debited to the bank account of the chargeable person in accordance with this subsection.

(d) For the purposes of this section, a chargeable person who pays an amount of preliminary tax appropriate to a relevant chargeable period in accordance with this subsection, shall be deemed to have paid that amount of preliminary tax on the due date for the payment of an amount of preliminary tax for that chargeable period.

(7) In this section—

‘pre-preceding chargeable period’, in relation to a chargeable period, means the chargeable period next before the immediately preceding chargeable period;

‘specified due date’ in relation to a year of assessment, means the 30th day of April in the year of assessment next after the year of assessment following that year of assessment.”.