Commentary on Sections Overview Overview Section 968: Treatment of sums representing income tax
2962.This section sets out the income tax treatment of any sums paid to the Commissioners for Her Majesty’s Revenue and Customs under section 966(3) or (4). It is based on section 555(8) to (11) of ICTA.
2963.Subsections (2) and (3) confirm that any payment made to the Commissioners is treated as made on account of the liability of another person to income tax or corporation tax and that the liability and the other person are to be found in accordance with prescribed rules.
2964.The regulations (regulation 12(1) of SI 1987/530) provide that the other person is the recipient of the payment or transfer. But where the recipient is of a “prescribed description” (for example the recipient is connected with the performer, see regulation 7 of SI 1987/530) then, under section 13(5) of ITTOIA, the other person will be the performer.
2965.Subsection (4) confirms that if the sum paid to the Commissioners exceeds the liability of the other person, then the Commissioners will repay so much of the amount as is appropriate to the other person. Again, the regulations provide that the other person is the recipient of the payment or transfer or, if the recipient is connected with the performer, the other person is the performer.
2966.Subsections (5) and (6) confirm that if there is no liability to make a payment under section 966 then the Commissioners will repay the sum to the recipient of the payment or transfer.