The Income Tax (Manufactured Overseas Dividends) Regulations 1993

Accounting for tax payable under paragraph 4(2) and (3) of Schedule 23A and these Regulations

11.—(1) Within 30 days of the end of a chargeable period–

(a) an overseas dividend manufacturer shall pay to the Board all amounts which he was liable to deduct under paragraph 4(2) of Schedule 23A on account of income tax from manufactured overseas dividends paid by him in that period;

(b) an overseas dividend manufacturer who is an approved United Kingdom intermediary shall pay to the Board the amount of any excess payable under regulation 9(6) attributable to that period;

(c) a United Kingdom recipient shall pay to the Board all amounts of tax for which he was liable to account under paragraph 4(3) of Schedule 23A in respect of manufactured overseas dividends received by him in that period;

(d) an approved United Kingdom intermediary or an approved United Kingdom collecting agent shall pay to the Board all amounts of tax for which he was liable to account under regulation 4(3) in respect of approved manufactured overseas dividends received by him in that period.

(2) Within 90 days of the end of a chargeable period–

(a) an overseas dividend manufacturer shall make a return to the Board or an inspector, in such form as the Board may prescribe, showing–

(i) the amounts which he was liable to deduct under paragraph 4(2) of Schedule 23A on account of income tax from approved manufactured overseas dividends paid by him in that period,

(ii) the amounts which he was liable to deduct under paragraph 4(2) of Schedule 23A on account of income tax from unapproved manufactured overseas dividends paid by him in that period, and

(iii) the amount of any excess payable under regulation 9(6) attributable to that period;

(b) a United Kingdom recipient shall make a return to the Board or an inspector, in such form as the Board may prescribe, showing the amounts of tax for which he was liable to account under paragraph 4(3) of Schedule 23A in respect of manufactured overseas dividends received by him in that period;

(c) an approved United Kingdom intermediary or an approved United Kingdom collecting agent shall make a return to the Board or an inspector, in such form as the Board may prescribe, showing the amounts of tax for which he was liable to account under regulation 4(3) in respect of approved manufactured overseas dividends received by him in that period.

(3) Any amount referred to in paragraph (1) shall be due at the end of the period of 30 days specified in that paragraph and shall be payable without the making of any assessment but may be assessed on the overseas dividend manufacturer or, as the case may be, the United Kingdom recipient, approved United Kingdom intermediary or approved United Kingdom collecting agent (whether or not it has been paid when the assessment is made) if it is not paid in full on or before that date.

(4) In any case where–

(a) it appears to the inspector that there is–

(i) a manufactured overseas dividend paid, or an overseas dividend or a manufactured overseas dividend received, by an overseas dividend manufacturer in a chargeable period, or

(ii) an overseas dividend or a manufactured overseas dividend received by a United Kingdom recipient, an approved United Kingdom intermediary or an approved United Kingdom collecting agent in a chargeable period,

which ought to have been but which has not been included in a return under paragraph (2) relating to that period, or

(b) the inspector is dissatisfied with any return under paragraph (2),

the inspector may make an assessment to the best of his judgment on the overseas dividend manufacturer or, as the case may be, the United Kingdom recipient, approved United Kingdom intermediary or approved United Kingdom collecting agent.

(5) Any income tax due under an assessment made by virtue of paragraph (4) shall be treated for the purposes of interest on unpaid tax as having been payable at the end of the period of 30 days specified in paragraph (1).

(6) Any amount for which an approved United Kingdom intermediary is liable to account under regulation 6(6), and any amount for which a United Kingdom recipient is liable to account under regulation 7(6), in respect of manufactured overseas dividends received by them in a chargeable period, shall be due at the end of the period of 30 days from the end of that period, and shall be payable without the making of any assessment but may be assessed on the approved United Kingdom intermediary or, as the case may be, the United Kingdom recipient (whether or not it has been paid when the assessment is made) if it is not paid in full on or before that date.

(7) The like provisions as are contained in the Income Tax Acts with respect to the time within which an assessment may be made, so far as they refer or relate to the year of assessment for which an assessment is made, or the year to which an assessment relates, shall have effect in relation to an assessment under this regulation notwithstanding that, under this regulation, the assessment may be said to relate to a period which is not a year of assessment; and the like provisions as are contained in section 36 of the Management Act(1) as to the circumstances in which an assessment may be made out of time shall have effect accordingly on the footing that any such assessment relates to the year of assessment in which the period in question ends.

(8) Income tax assessed on a person under this regulation shall be due at the end of the period of 30 days after the issue of the notice of assessment (unless due earlier under paragraph (3) or (6)).

(9) Any tax assessable under any one or more of the provisions of this regulation may be included in one assessment if the tax so included is all due on the same date.

(10) Section 31(2) and Part V of the Management Act shall apply to an appeal against any assessment to tax under this regulation.

(11) Subsections (1), (7) and (8) of section 87 of the Management Act(3) shall apply to tax assessable under this regulation as they apply to tax assessable in accordance with Schedules 13 and 16 to the Taxes Act, and accordingly those subsections shall have effect as if references to those schedules included references to this regulation.

(12) Section 98 of the Management Act(4) shall apply in relation to a return under paragraph (2) with the modification specified in paragraph (13).

(13) At the end of the second column of the Table in section 98 of the Management Act there shall be inserted–

• “Regulation 11(2) of the Income Tax (Manufactured Overseas Dividends) Regulations 1993”.

(1)

Section 36 was substituted by section 149(1) of the Finance Act 1989 (c. 26), and the section as substituted was amended by paragraph 4(1) of Schedule 11 to the Finance Act 1990 (c. 29), and paragraph 9(2) of Schedule 5 to the Finance (No. 2) Act 1992.

(2)

Section 31 was amended by paragraph 3(1) of Schedule 22 to the Finance Act 1984 (c. 43), paragraph 32 of Schedule 29 to the Income and Corporation Taxes Act 1988, Part V of Schedule 17 to the Finance Act 1989, paragraph 14 of Schedule 14 to the Finance Act 1990 and paragraph 2(7) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12).

(3)

Section 87 was substituted by paragraph 10 of Schedule 24 to the Finance Act 1972 (c. 41), and subsections (1), (7) and (8) of that section as substituted were amended by section 46(3)(b) of the Finance (No. 2) Act 1975 (c. 45), paragraph 32 of Schedule 29 to the Income and Corporation Taxes Act 1988 and section 179(1)(b) of the Finance Act 1989.

(4)

Section 98 was amended by paragraph 9 of Schedule 29 to the Income and Corporation Taxes Act 1988, section 164 of the Finance Act 1989 and section 68(3) of the Finance Act 1990.