Amendments Nos. 37 and 38 are related and may be discussed together.
SECTION 152.
I move amendment No. 37:
In page 137, subsection (2) (a), line 49, for " Any tax assessable in accordance with section 151 " to substitute the following:
" Any tax payable in accordance with section 151 without the making of an assessment ".
They are required to remove a possible conflict between this section and section 550 of the Income Tax Act, 1967, which imposes interest on any tax charged by any assessment to income tax when overdue. The proposed amendment of subsection (2) (a) will confine the application of the subsection to income tax payable without the making of an assessment.
The proposed additional subsection (3) provides that when tax which has been assessed under section 151, subsection (6), is not paid on the due date it will not be possible to avoid interest by making payment within two months of the due date or by appealing against the assessment and making a payment on account. The reason for this is that for at least six months the company will have had the use of the tax which it deducted from a payment made to another person.
That is where a payment had actually been made?
Yes.
If there has not been a payment made for some reason or another——
Then there is no tax liability.
Amendment agreed to.
I move amendment No. 38:
In page 137, after line 56, to insert the following additional subsection:
" (3) In its application to any tax charged by any assessment to income tax in accordance with section 151, section 550 of the Income Tax Act, 1967, shall have effect with the omission of the proviso to subsection (1) and subsections (2) and (2A).".
Amendment agreed to.
Section, as amended, agreed to.