The Income Tax (Manufactured Overseas Dividends) Regulations 1993

Retention and record of notices given under regulations 4 and 5

6.—(1) A notice given under regulation 4(4)(c) or regulation 5(2)(b)(iii) shall be in the form provided, or in a form authorised, by the Board.

(2) A recipient of such a notice–

(a) shall retain the notice for a period of six years and, whenever required to do so within that period, shall make it available for inspection by an officer of the Board, and

(b) if he receives more than one such notice during any chargeable period, shall in addition maintain a record showing–

(i) the date of each such notice received in that period, and

(ii) a description and the amount of the manufactured overseas dividend referred to in each such notice received in that period.

(3) A person who issues such a notice–

(a) shall retain a copy of it for a period of six years and, whenever required to do so within that period, shall make that copy available for inspection by an officer of the Board, and

(b) if he issues more than one such notice during any chargeable period, shall in addition maintain a record showing–

(i) the date of each such notice issued in that period, and

(ii) a description and the amount of the manufactured overseas dividend referred to in each such notice issued in that period.

(4) Any record required to be maintained by the recipient of a notice under paragraph (2)(b), or by the issuer of a notice under paragraph (3)(b), shall be retained by that person for a period of six years from the end of the chargeable period to which the record relates.

(5) Where the issuer of a notice fails to retain a copy of it for the period specified in paragraph (3)(a), or fails to maintain any such record as is specified in paragraph (3)(b) or to retain any such record for the period specified in paragraph (4), the Board may require that person to carry out, at his own expense, an audit of manufactured overseas dividends received by that person in order to ascertain the amount of tax, if any, liable to be deducted under paragraph 4(2) of Schedule 23A which was not deducted.

(6) The scope and method of the audit referred to in paragraph (5) shall be agreed between the Board and the issuer of the notice or, in the absence of agreement, determined by the Board, and the issuer of the notice shall account for and pay any tax which on the basis of the findings of the audit was liable to be deducted but which was not deducted from manufactured overseas dividends received by him.