Income and Corporation Taxes Act 1988

4 (1) Subject to sub-paragraph [F1 (3)] below, income tax in respect of any payment required to be included in a return under this Schedule shall be due at the time by which the return is to be made, and income tax so due—

(a) shall be payable by the company without the making of any assessment; and

(b) may be assessed on the company (whether or not it has been paid when the assessment is made) if it, or any part of it, is not paid on or before the due date.

(2) If it appears to [F2 an officer of the Board] that there is a relevant payment which ought to have been and has not been included in a return, [F3 or if an officer of the Board is of the opinion that a return is incorrect, any such officer may] make an assessment on the company to the best of his judgment; and any income tax due under an assessment made by virtue of this sub-paragraph shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.

(3) Where a payment has been included in a return under Schedule 13 by virtue of paragraph 7(1)(b) of that Schedule and it becomes apparent that the payment is not a qualifying distribution but a relevant payment—

(a) sub-paragraph (1)(a) above shall not apply to that payment; and

(b) income tax shall be assessed in respect of it on the company.

Textual Amendments

F1 1990 s.89and Sch.14 para.13 (correction of errors)—deemed always to have had effect. Previously

“(4)”.

F2 Words in Sch. 16 para. 4(2) substituted (with effect in accordance with s. 137(2)(3) of the amending Act) by Finance Act 1996 (c. 8). Sch. 23 para. 11(a)

F3 Words in Sch. 16 para. 4(2) substituted (with effect in accordance with s. 137(2)(3) of the amending Act) by Finance Act 1996 (c. 8). Sch. 23 para. 11(b)