Finance Act 1994

Tax representatives U.K.

57 Tax representatives. U.K.

(1) Where at any time (a relevant time) a person who is an insurer—

(a) is registered, or liable to be registered, under section 53 above, and

(b) does not have any business establishment or other fixed establishment in the United Kingdom,

this section shall have effect with a view to securing that another person is the insurer’s tax representative at that time.

(2) If, at the time the insurer first falls within subsection (1) above, the insurer has a representative fulfilling the requirements of section 10 of the M1 Insurance Companies Act 1982—

(a) the Commissioners shall be taken to approve that person at that time as the insurer’s tax representative, and

(b) that person shall be the insurer’s tax representative at any relevant time falling after the time mentioned in paragraph (a) above and before the Commissioners’ approval is withdrawn.

(3) If, at the time the insurer first falls within subsection (1) above, the insurer does not have a representative fulfilling the requirements of section 10 of the Insurance Companies Act 1982, the insurer shall take action as mentioned in subsection (4) below.

(4) The insurer takes action as mentioned in this subsection if—

(a) he requests the Commissioners to approve a particular person as his tax representative, and

(b) the request is made with a view to securing that a person approved by the Commissioners becomes the insurer’s tax representative within the relevant period.

(5) If the Commissioners approve a person as the insurer’s tax representative in a case where action has been taken as mentioned in subsection (4) above, that person shall be the insurer’s tax representative at any relevant time falling after the Commissioners’ approval is given and before their approval is withdrawn.

(6) Subsection (7) below applies where the Commissioners believe that the revenue would not be sufficiently protected if—

(a) a person were to become the insurer’s tax representative by virtue of subsection (2) above, or

(b) a person who by virtue of any of the provisions of this section is the insurer’s tax representative were to continue to be so.

(7) If the Commissioners require the insurer to take action as mentioned in subsection (4) above the insurer shall comply with that requirement.

(8) In a case where—

(a) a person is the insurer’s tax representative,

(b) the insurer withdraws his agreement that that person should act as his tax representative, or that person withdraws his agreement to act as the insurer’s tax representative, or the insurer and that person agree that that person should no longer be the insurer’s tax representative, and

(c) that person notifies the Commissioners accordingly,

the Commissioners shall be taken to have withdrawn their approval of that person at the time they inform the insurer that they have received the notification, and that person shall cease at that time to be the insurer’s tax representative.

(9) Where subsection (8) above applies the insurer shall take action as mentioned in subsection (4) above.

(10) If at any time after the insurer first falls within subsection (1) above—

(a) the insurer (otherwise than in pursuance of a duty under subsection (3), (7) or (9) above) requests the Commissioners to approve a particular person as his tax representative, and

(b) the Commissioners approve that person,

that person shall be the insurer’s tax representative at any relevant time falling after the Commissioners’ approval is given and before their approval is withdrawn.

(11) The Commissioners may at any time direct that a person who is an agent of the insurer and is specified in the direction shall be the insurer’s tax representative; and—

(a) the direction shall be taken to signify the Commissioners’ approval of that person as the insurer’s tax representative;

(b) that person shall be the insurer’s tax representative at any relevant time falling after the Commissioners’ direction is made and before their approval is withdrawn;

(c) the direction shall not prejudice any duty of the insurer under subsection (3), (7) or (9) above;

(d) subsection (8) above shall not apply in the case of the person specified in the direction.

(12) Where the Commissioners approve a person under this section as the insurer’s tax representative—

(a) at the time the approval is given they shall be taken to withdraw their approval of any person who was the insurer’s tax representative immediately before the approval was given, and

(b) that person shall cease at that time to be the insurer’s tax representative.

(13) The fact that a person ceases to be an insurer’s tax representative shall not prevent his subsequent approval under this section.

(14) The Commissioners may not withdraw their approval of a person as a tax representative except by virtue of subsection (8) or (12) above.

(15) Regulations may make provision as to the time at which—

(a) the Commissioners’ approval is to be treated as given in a case where action has been taken as mentioned in subsection (4) above or a request has been made as mentioned in subsection (10) above;

(b) the Commissioners are to be taken to inform the insurer under subsection (8) above;

(c) a direction of the Commissioners is to be treated as made under subsection (11) above.

(16) The relevant period for the purposes of subsection (4) above is—

(a) where subsection (4) above applies by virtue of subsection (3) above, the period of 30 days beginning with the day on which the insurer first falls within subsection (1) above;

(b) where subsection (4) above applies by virtue of subsection (7) above, the period of 30 days beginning with the day on which the requirement mentioned in subsection (7) above is made;

(c) where subsection (4) above applies by virtue of subsection (9) above, the period of 30 days beginning with the day on which the person mentioned in subsection (8) above ceases to be the insurer’s tax representative;

but if in any case the Commissioners allow a longer period than that found under paragraphs (a) to (c) above, the relevant period is that longer period.

Marginal Citations

M1 1982 c. 50.

58 Rights and duties of tax representatives. U.K.

(1) Where a person is an insurer’s tax representative at any time, the tax representative—

(a) shall be entitled to act on the insurer’s behalf for the purposes of legislation relating to insurance premium tax,

(b) shall secure (where appropriate by acting on the insurer’s behalf) the insurer’s compliance with and discharge of the obligations and liabilities to which the insurer is subject by virtue of legislation relating to insurance premium tax (including obligations and liabilities arising before the person became the insurer’s tax representative), and

(c) shall be personally liable in respect of any failure to secure the insurer’s compliance with or discharge of any such obligation or liability, and in respect of anything done for purposes connected with acting on the insurer’s behalf,

as if the obligations and liabilities imposed on the insurer were imposed jointly and severally on the tax representative and the insurer.

(2) A tax representative shall not be liable by virtue of subsection (1) above himself to be registered under this Part, but regulations may—

(a) require the registration of the names of tax representatives against the names of the insurers in any register kept under this Part;

(b) make provision for the deletion of the names of persons who cease to be tax representatives.

(3) A tax representative shall not by virtue of subsection (1) above be guilty of any offence except in so far as—

(a) the tax representative has consented to, or connived in, the commission of the offence by the insurer,

(b) the commission of the offence by the insurer is attributable to any neglect on the part of the tax representative, or

(c) the offence consists in a contravention by the tax representative of an obligation which, by virtue of that subsection, is imposed both on the tax representative and on the insurer.

(4) Subsection (1)(b) above shall have effect subject to such provisions as may be made by regulations.