TAXATION (UNPAID COMPANY TAX) ASSESSMENT ACT 1982

***** Repealed 22 September 1999 *****

SECTION 8   LIABILITY TO PAY TAX  

8(1)  [Vendors]  

Subject to this Act, where at any time a vendors taxable amount exists in relation to a person, the person is liable to pay the tax imposed on that amount by the Taxation (Unpaid Company Tax - Vendors) Act 1982.

8(2)  [Promoters]  

Subject to this Act, where at any time a promoters taxable amount exists in relation to an eligible promoters class, the persons included in that class are jointly and severally liable to pay the tax imposed on that amount by the Taxation (Unpaid Company Tax - Promoters) Act 1982.

8(3)  [Additional company tax accruing after assessment]  

Where an assessment has been made, in relation to a sale or purchase of shares, or of an interest in shares, under a scheme, of the recoupment tax payable by a person on a primary taxable amount, or promoters taxable amount, ascertained by reference to an amount of company tax due and payable by a company in relation to a year of income that remained unpaid at the time when the assessment was made, the liability of the person in respect of recoupment tax or late payment tax in respect of that sale or purchase of those shares or of that interest in respect of that year of income shall not be increased on account of any additional tax payable by the company under section 207 of the Assessment Act that accrues after the time when the assessment was made.

8(4)  [Additional company tax accruing after assessment]  

Where an assessment has been made, in relation to a sale of shares, or of an interest in shares, under a scheme, of the recoupment tax payable by a person on a secondary taxable amount, being recoupment tax ascertained by reference to an amount of company tax due and payable by a company in relation to a year of income, the liability of the person in respect of recoupment tax or late payment tax in respect of that sale of those shares or of that interest in respect of that year of income:

(a)  shall not be increased on account of any additional tax payable by the company under section 207 of the Assessment Act that accrues after the time when the assessment was made; and

(b)  in a case to which subsection 6(3) applies, shall not be reduced on account of any change in the opinion of the Commissioner as to the likelihood of the recoupment tax referred to in that subsection being paid.

8(5)  [Amendment of company's assessment]  

Where:

(a)  an assessment (in this subsection referred to as the ``recoupment tax assessment'') is made of the recoupment tax payable by a person in relation to a sale or purchase of shares, or of an interest in shares, in relation to an amount of ordinary company tax or undistributed profits tax due and payable by a company in relation to a year of income; and

(b)  after the recoupment tax assessment is made, the assessment in relation to the ordinary company tax or undistributed profits tax, as the case may be, is amended,

the amount of the recoupment tax that the person is liable to pay in respect of that sale or purchase of those shares or of that interest, in relation to the ordinary company tax or undistributed profits tax, as the case may be, payable by the company in relation to that year of income is the amount that the person would have been liable to pay if the ordinary company tax or undistributed profits tax, as the case may be, payable by the company in relation to the year of income under the amended assessment had been payable by the company under the assessment that was amended.

8(6)  [Promoter's liability where vendor subsequently assessed]  

Where:

(a)  an assessment is made of the promoters recoupment tax payable by a person or persons in relation to a purchase of shares in relation to an amount of ordinary company tax or undistributed profits tax due and payable by a company in relation to a year of income;

(b)  the promoters taxable amount to which the recoupment tax relates was ascertained under paragraph 7(1)(k) or (2)(k); and

(c)  after the assessment of the promoters recoupment tax is made, vendors recoupment tax becomes payable in relation to ordinary company tax or undistributed profits tax, as the case may be, payable by the company in relation to the year of income,

the amount of the promoters recoupment tax that is payable by the person or persons in respect of that purchase of those shares, in relation to the ordinary company tax or undistributed profits tax, as the case may be, payable by the company in relation to the year of income is the amount that person or those persons would have been liable to pay if the promoters taxable amount had been ascertained under paragraph 7(1)(j) or (2)(j), as the case may be.

8(7)  [Remission of additional tax or late payment tax]  

For the purposes of this Act, where any additional tax payable under section 207 of the Assessment Act or any late payment tax is remitted, that additional tax or late payment tax, as the case may be, shall be deemed never to have been payable.