Finance Act, 1971

Interest on corporation profits tax in cases of fraud or neglect.

50.—(1) In this section “neglect” has the same meaning as in section 13 of the Finance (Miscellaneous Provisions) Act, 1968.

(2) Where, for any accounting period ending on or after the date of the passing of this Act, an assessment is made for the purpose of recovering an undercharge to corporation profits tax which is attributable to the fraud or neglect of any person, the amount of the tax undercharged shall carry interest at the rate of .75 per cent. for each month or part of a month from the expiration of one year after the end of that accounting period to the date of payment of the tax undercharged.

(3) Subject to subsection (5), subsections (1) and (3) of section 14 of the Finance Act, 1962 , shall not apply to tax carrying interest under this section.

(4) Subsections (4), (5), (6) and (7) of section 14 of the Finance Act, 1962 , shall apply to interest chargeable under this section as they apply to interest chargeable under the said section 14.

(5) Where an assessment of the kind referred to in subsection (2) is made—

(a) the inspector concerned shall give notice to the person assessed that the tax charged by the assessment will carry interest under this section,

(b) the person assessed may appeal against the assessment on the ground that interest should not be charged under this section and the provisions of the enactments relating to corporation profits tax governing appeals against assessments shall apply and have effect in relation to the appeal as they apply in relation to those appeals with any necessary modifications, and

(c) if, on the appeal, it is determined that the tax charged by the assessment should not carry interest under this section, subsections (1) and (3) of section 14 of the Finance Act, 1962 , shall apply to that tax.