SCHEDULES

SCHEDULE 1Bank payroll tax

Part 1The tax

Anti-avoidance

14

1

This paragraph applies where—

a

relevant arrangements are entered into by one or more persons during the chargeable period, and

b

the main purpose, or one of the main purposes, of the person, or any of the persons, in entering into the relevant arrangements is a relevant tax avoidance purpose.

2

Relevant arrangements” means arrangements involving either or both of the following—

a

the making of a payment of money, or the provision of any money's worth or other benefit, otherwise than during the chargeable period, and

b

the giving otherwise than in the form of relevant remuneration of any reward which equates in substance to relevant remuneration.

3

A “relevant tax avoidance purpose” is the reduction or elimination of a liability to bank payroll tax which would exist if—

a

in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or

b

in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.

4

Liability to bank payroll tax is to be determined as it would have been if—

a

in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or

b

in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.