Finance Act, 1995
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Amendment of section 48 (surcharge for late submission of returns) of Finance Act, 1986. |
30.—(1) Section 48 of the Finance Act, 1986 , is hereby amended— | |
(a) by the substitution of the following subsection for subsection (2), apart from the proviso thereto: | ||
“(2) Where, in relation to a year of assessment or accounting period, a chargeable person fails to deliver a return of income on or before the specified date in relation to the return of income, any amount of tax for that year of assessment or accounting period which, apart from this section, is or would be contained in an assessment to tax made or to be made on the chargeable person shall be increased by an amount (hereafter in this subsection referred to as the ‘surcharge’) equal to— | ||
(a) 5 per cent, of that amount of tax, subject to a maximum increased amount of £10,000, where the return of income is delivered before the expiry of two months from the specified date, and | ||
(b) 10 per cent, of that amount of tax, subject to a maximum increased amount of £50,000, where the return of income is not delivered before the expiry of two months from the specified date, | ||
and, if the tax contained in the assessment is not the amount of tax as so increased, then all the provisions of the Tax Acts and the Capital Gains Tax Acts (apart from this section) including, in particular, those relating to the collection and recovery of tax and the payment of interest on unpaid tax shall apply as if the tax contained in the assessment to tax were the amount of tax as so increased:”, | ||
and | ||
(b) by the addition after subsection (3) of the following: | ||
“(4) Notwithstanding the foregoing provisions, the specified date in relation to a return of income for a year of assessment to which the provisions of section 58 (2) of the Income Tax Act, 1967 , apply, shall be the date which is the specified date in relation to the return of income in respect of the year of assessment next following that year: | ||
Provided that throughout the first-mentioned year of assessment the chargeable person or that person's spouse, not being a spouse in relation to whom section 193 of the Income Tax Act, 1967 , has effect for that year of assessment, was not carrying on a trade or profession which was set up and commenced in a previous year of assessment.”. | ||
(2) (a) Paragraph (a) of subsection (1) shall apply and have effect as respects the year 1995-96 and any subsequent year of assessment and as respects any accounting period ending on or after the 6th day of April, 1995. | ||
(b) Paragraph (b) of subsection (1) shall apply and have effect as respects the year 1995-96 and any subsequent year of assessment. |