|
|
Amendment of Part 8 (annual payments, charges and interest) of Principal Act.
|
26.— (1) The Principal Act is amended—
|
|
| |
(a) in section 256(1) in the definition of “appropriate tax”—
|
|
| |
(i) in paragraph (a) by substituting “23 per cent” for “20 per cent”,
|
|
| |
(ii) by substituting the following for paragraph (b):
|
|
| |
“(b) subject to paragraph (c), in the case of interest paid in respect of any other relevant deposit, at a rate determined by the formula—
|
|
| |
(S + 3) per cent
|
|
| |
where S is the standard rate per cent (within the meaning of section 4(1)) in force at the time of payment, and”,
|
|
| |
and
|
|
| |
(iii) in paragraph (c), by substituting “(S + 6) per cent” for “(S + 3) per cent”,
|
|
| |
(b) in section 261(c)(i) by substituting the following for clause (II):
|
|
| |
“(II) where the taxable income of that person includes relevant interest which comes within paragraph (b) of the definition of ‘appropriate tax’ in section 256(1) of the Principal Act, the part of taxable income, equal to that relevant interest, shall be chargeable to tax at the rate at which tax was deducted from that relevant interest.”,
|
|
| |
(c) in section 261B by substituting the following for subsection (2):
|
|
| |
“(2) Notwithstanding section 15, where the taxable income of that person includes specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate at which tax would have been deducted, from that interest, if a declaration under subsection (1A) or (1B) of section 256 had not been made.”,
|
|
| |
(d) in section 267B—
|
|
| |
(i) in subsection (2)(b) by substituting “23 per cent” for “20 per cent”, and
|
|
| |
(ii) in subsection (3)(b) by substituting “23 per cent” for “20 per cent”,
|
|
| |
and
|
|
| |
(e) in section 267M, by substituting the following for paragraph (a) of subsection (2):
|
|
| |
“(a) Notwithstanding section 15 and subject to paragraph (b), where the taxable income of that person includes specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in paragraph (b) of the definition of ‘appropriate tax’ in subsection 256(1).”,
|
|
| |
(2) (a) Paragraphs (a) and (d) of subsection (1) apply as respects any payment or crediting of relevant interest (within the meaning of Chapter 4 of Part 8 of the Principal Act) made on or after 1 January 2009.
|
|
| |
(b) Paragraphs (b), (c) and (e) of subsection (1) apply for the year of assessment 2009 and subsequent years of assessment.
|
