The Income Tax (Paying and Collecting Agents) Regulations 1996

Declaration by depositary for recognised clearing system

3.—(1) Subsection (1)(a) of section 118 D shall not apply in respect of a relevant payment payable by a paying agent to, or at the direction of, a depositary for a recognised clearing system, and subsection (2)(a) of that section shall not apply in respect of a relevant receipt payable by a collecting agent to, or at the direction of, such a depositary, or for which a collecting agent is accountable to, or at the direction of, such a depositary, unless the depositary has made a declaration in writing to the paying agent or, as the case may be, the collecting agent concerned.

(2) A declaration under paragraph (1) shall be in such form as the Board may require, and shall contain the information specified in paragraph (3) and the undertaking specified in paragraph (4).

(3) The information specified is—

(a) the full name of the recognised clearing system;

(b) the full name of the depositary;

(c) the address of the principal place of business of the depositary;

(d) the full name of the paying agent or the collecting agent to whom the declaration is made;

(e) a statement by the depositary either—

(i) that the relevant payments payable by the paying agent are payable in respect of foreign holdings held in the recognised clearing system for which he acts as depositary, or

(ii) that the relevant receipts payable by the collecting agent or for which the collecting agent is accountable, are payable in respect of relevant holdings held in the recognised clearing system for which he acts as depositary;

(f) a statement by the depositary that the information contained in the declaration is correct to the best of his knowledge and belief.

(4) The undertaking specified is an undertaking that the depositary will notify the paying agent or the collecting agent to whom the declaration is made of any relevant payments or relevant receipts to which the declaration does not apply, or has ceased to apply.

(5) A declaration under paragraph (1) shall be signed by an officer of the depositary authorised for that purpose, stating the capacity in which he signs.

(6) A declaration under paragraph (1) shall have effect in relation to any relevant payments or relevant receipts arising to a depositary that are paid or accounted for by a paying or collecting agent after the declaration is made to the agent, unless and until the agent—

(a) receives a notification relating to those payments or receipts in accordance with the undertaking contained in the declaration,

(b) receives a notice from the Board under regulation 10(2) relating to those payments or receipts, or

(c) has reason to believe, by reference to information in his possession, that the declaration is, or has become, incorrect as respects those payments or receipts.