Taxes Management Act 1970

36 [Fraudulent or negligent conduct. U.K.

(1) An assessment on any person (in this section referred to as “the person in default”) for the purpose of making good to the Crown a loss of tax attributable to his fraudulent or negligent conduct or the fraudulent or negligent conduct of a person acting on his behalf may be made at any time not later than twenty years after the end of the chargeable period to which the assessment relates.

(2) Where the person in default is an individual who carried on a trade or profession in partnership with another individual, or with other persons at least one of whom is an individual, at any time in the year for which the assessment is made, an assessment in respect of the profits or gains of the trade or profession for the purpose mentioned in subsection (1) above may be made not only on the person in default but also on his partner or, as the case may be, on any of his partners who is an individual.

(3) If the person on whom the assessment is made so requires, in determining the amount of the tax to be charged for any chargeable period in any assessment made for the purpose mentioned in subsection (1) above, effect shall be given to any relief or allowance to which he would have been entitled for that chargeable period on a claim or application made within the time allowed by the Taxes Acts F1 .]

[F2 (3A) In subsection (3) above, “claim or application” does not include an election under section 257BA of the principal Act (elections as to transfer of married couple’s allowance).]

[(4) Any act or omission such as is mentioned in section 98B below on the part of a grouping (as defined in that section) or member of a grouping shall be deemed for the purposes of subsection (1) above to be the act or omission of each member of the grouping F3 .] F4

Textual Amendments

F1 Finance Act 1989 s. 149(1)but shall not affect making of assessments before 1983-84or for accounting periods ending before1April 1983.Previously

“Fraud or wilful default.36. Subject to section 41 below, where any form of fraud or wilful default has been committed by or on behalf of any person in connection with or in relation to tax, assessments on that person to tax may, for the purpose of making good to the Crown any loss of tax attributable to the fraud or wilful default, be made at any time(a)”

(a)

See Taxes Management Act 1970 (c. 9, SIF 63:1) s.119andSch.4 para.3(1)—not applicable to tax for years before1936—37.

F2 S. 36(3A) inserted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 20, Sch. 5 paras. 9(2), 10

F3 Finance Act 1990 s. 69and Sch. 11 para. 4(1)on and after 1July 1989.

F4 See—Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 13—application of s. 36to assessments to advance corporation tax. Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 16—application of s. 36to assessments to income tax on company payments which are not distributions. Finance Act 1988 (c. 39, SIF 63:1,2) Sch. 5 para. 9—underwriter's agent.S.I. 1987 No. 530 (in Part III Vol. 5) regn. 11(2)—application of ss. 36and 37to assessments in relation to non-resident entertainers and sportsmen.

Modifications etc. (not altering text)

C1 S. 36 modified (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. I para.8

C2 S. 36 applied (1.10.1993) by S.I. 1993/2004, reg.11(7)

C3 S. 36(1) applied (with modifications) (19.4.1991) for the year of assessment 1988-1989 by S.I. 1991/851, regs. 1, 3(2), Sch. 1

S. 36(1) extended (with modifications) (28.3.1992) for the year of assessment 1989-90 by S.I. 1992/511, regs. 1,3, Sch. 1

C4 S. 36(1)(2) modified (16.7.1992) by Income and Corporation Taxes Act 1988 (c. 1), Sch. 3 para. 6E (which was inserted (16.7.1992 having effect in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras. 2(2), 6)

C5 S. 36(1) applied (with modifications) (23.3.1993 with effect for the year of assessment 1990-91 only) by S.I. 1993/415, regs. 1(1), 3(2), Sch.1