Finance Act 1973

Section 38.

SCHEDULE 15 Territorial Extension of Charge to Tax—Supplementary Provisions

Appeals

1 In section 31(3) of the [1970 c. 9.] Taxes Management Act 1970 (appeals to Special Commissioners) after paragraph (b) there shall be inserted the words “or

(c) is made by virtue of section 38 of the Finance Act 1973 and is not an assessment to tax under Schedule E.”

Information

2 The holder of any licence granted under the [1934 c. 36.] Petroleum (Production) Act 1934 shall, if required to do so by a notice served on him by an inspector, give to the inspector within the time limited by the notice (which shall not be less than thirty days) such particulars as may be required by the notice of—

(a) transactions in connection with activities authorised by the licence as a result of which any person is or might be liable to tax by virtue of section 38 of this Act; and

(b) emoluments paid or payable in respect of duties performed in an area in which those activities may be carried on under the licence and the persons to whom they were paid or are payable ;

and shall take reasonable steps to obtain the information necessary to enable him to comply with the notice.

3 In section 98 of the Taxes Management Act 1970 (penalty for failure to furnish information) there shall be added in the first column of the Table the words " Paragraph 2 of Schedule 15 to the Finance Act 1973. "

Collection

4 (1) Subject to the following provisions of this Schedule, where any tax is assessed by virtue of section 38 of this Act on a person not resident in the United Kingdom in respect of—

(a) profits or gains from activities authorised, or carried on in connection with activities authorised, by a licence granted under the Petroleum (Production) Act 1934, or

(b) profits or gains from, or chargeable gains accruing on the disposal of, exploration or exploitation rights connected with activities so authorised or carried on,

then, if the tax remains unpaid later than thirty days after it has become due and payable, the Board may serve a notice on the holder of the licence stating particulars of the assessment, the amount remaining unpaid and the date when it became payable, and requiring the holder of the licence to pay that amount, together with any interest due thereon under section 86 of the Taxes Management Act 1970, within thirty days of the service of the notice.

(2) Any amount which a person is required to pay by a notice under this paragraph may be recovered from him as if it were tax due and duly demanded from him ; and he may recover any such amount paid by him from the person on whom the assessment was made.

5 Paragraph 4 above does not apply to any assessment to tax under Schedule E.

6 Paragraph 4 above does not apply if the profits or gains arose or the chargeable gains accrued to the person on whom the assessment is made in consequence of a contract made by the holder of the licence before 23rd March 1973, unless he is a person connected with the holder within the meaning of section 533 of the Taxes Act or the contract was substantially varied on or after that date.

7 Where, on an application made by a person who will or might become liable to tax which, if remaining unpaid, could be recovered under paragraph 4 above from the holder of a licence, the Board are satisfied that the applicant will comply with any obligations imposed on him by the Taxes Acts, they may issue a certificate to the holder of the licence exempting him from the provisions of that paragraph with respect to any tax payable by the applicant; and where such a certificate is issued that paragraph shall not apply to any such tax which becomes due while the certificate is in force.

8 The Board may, by notice in writing to the holder of a certificate issued under paragraph 7 above, cancel the certificate from such date, not earlier than thirty days after the service of the notice, as may be specified in the notice.

9 In this Schedule " the Taxes Acts " has the same meaning as in the [1970 c. 9.] Taxes Management Act 1970.