Finance Act, 1996
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Amendment of section 17 (tax deduction from payments to subcontractors) of Finance Act, 1970. |
41.—As respects relevant contracts (within the meaning of section 17 of the Finance Act, 1970 ) entered into on or after the passing of this Act, section 17 (inserted by the Finance Act, 1976 ) of the Finance Act, 1970 , is hereby amended— | |
(a) in subsection (1), by the insertion of the following proviso to the definition of “relevant contract”: | ||
“Provided that a separate relevant contract shall be deemed to exist between the principal and each individual member of a gang or group of persons, including a partnership in respect of which the principal has not received a relevant payments card, where relevant operations are performed collectively by the gang or group, notwithstanding that any payment or part of a payment in respect of such relevant operations is made by the principal to one or more of the gang or group or to some other person;”, | ||
(b) in subsection (2), by the insertion after “the principal makes a payment” of “or is deemed to make a payment pursuant to subsection (2A)”, | ||
(c) by the insertion of the following subsection after subsection (2): | ||
“(2A) Where relevant operations are performed by a gang or group of persons, including a partnership in respect of which the principal has not received a relevant payments card, and notwithstanding that any payment or part of a payment in respect of such relevant operations is made by the principal to one or more of the gang or group or to some other person, then such payment or part of a payment shall be deemed, for the purposes of this section and any regulations made thereunder, to have been made by the principal to the individual members of that gang or group in the proportions in which the payment or any amount in respect of the payment is to be divided amongst them.”, | ||
and | ||
(d) in paragraph (d) of subsection (5), by the insertion after “certificates of tax deducted from payments made to subcontractors” of “and the entry thereon of such particulars as may be specified in the regulations”. |