ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change has no implications for the amount of tax paid, who pays it or when. It affects (in principle but not in practice) only administrative matters. Change 143: Deduction of tax: collection: deposit-takers, building societies and certain companies: returns: sections 949, 952, 953, 957 and 958
This change makes it clear that a return need be submitted only where a section 946 payment was made in that particular return period. It also clarifies related points.
Paragraph 2 of Schedule 16 to ICTA leaves it unclear whether a return need be made only for a return period in which a section 946 payment has been made or whether returns need to be made for each return period in any accounting period in which at least one section 946 payment has been made. Section 949 makes the position clear, in line with current practice.
The related points which follow from this change affect sections 952, 953, 957 and 958.
Sections 952(2) and 953(4) (set-off) clarify that a payer may make a set-off claim even where no section 946 payment has been made in the return period concerned. Under the source legislation this point is unclear because paragraph 5 of Schedule 16 to ICTA requires the claim to be included in a paragraph 2 return. (As mentioned above, it is unclear when such a return needs to be submitted.)
Section 957 (assessment in other cases) clarifies that an assessment can be made in respect of any return (including a return made only in order to make a set-off claim). Under the source legislation, this point is unclear as paragraph 4(2) of Schedule 16 to ICTA refers to returns made under paragraph 2. (As mentioned above, it is unclear when such a return needs to be submitted.)
Section 958 (payer’s duty to deliver amended return) clarifies that the payer is under a duty to correct not only returns which include a section 946 payment, but also returns where a claim for set-off has been made. Under the source legislation, this point is unclear as paragraph 7A of Schedule 16 to ICTA refers to returns made under paragraph 2. (As mentioned above, it is unclear when such a return needs to be submitted.)