The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993

Formal determination of amounts payable by contractor

14.—(1) Where—

(a) there is a dispute between a contractor and a sub-contractor as to the amount, if any, deductible by the contractor under section 559 from a payment to the sub-contractor or his nominee, or

(b) the inspector has reason to believe, as a result of an inspection under regulation 41 or otherwise, that the amount which a contractor is liable to pay to the collector under these Regulations is greater than the amount, if any, which he has so paid, or

(c) the inspector considers it necessary to do so in all the circumstances,

the inspector may make an assessment on the contractor in the amount which, according to the best of his judgment, the contractor is liable to pay under these Regulations.

(2) An assessment under paragraph (1) shall be subject to the like provisions as are contained in Parts IV, V and VI of the Management Act as if it were an assessment to income tax and as if the amount assessed were income tax charged on the contractor and the like provisions as are contained in those Parts of the Management Act shall apply accordingly with any necessary modifications, except that the amount charged by the assessment shall be due and payable 14 days after the assessment is made.

(3) Where there is a dispute such as is mentioned in sub-paragraph (a) of paragraph (1) and the inspector does not make an assessment on the contractor under that paragraph, either the contractor or the sub-contractor may, on giving notice to the inspector, apply to the General Commissioners to determine the matter.

(4) The like provisions as are contained in Part V of the Management Act shall apply, with the appropriate modifications, to an application under paragraph (3) as they apply to an appeal against an assessment.

(5) Where there is a dispute such as is mentioned in sub-paragraph (a) of paragraph (1)—

(a) the contractor shall nevertheless make the deduction required by section 559 from the payment, or the part of the payment, to which the dispute relates, and the amount he so deducts shall be treated as a sum which he is liable to pay to the collector under these Regulations; and

(b) any amount which, on a final determination of the dispute, is shown not to have been so payable shall be treated as an overpayment of income tax or corporation tax by the sub-contractor.