i e AT 3 of 1970 INCOME TAX ACT 1970

Transcription

1 i e AT 3 of 1970 INCOME TAX ACT 1970

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3 Inome Tax At 1970 Index i e INCOME TAX ACT 1970 Index Setion Page Liability to Inome Tax 11 1 Imposition of inome tax A [Repealed] Inome on whih tax is payable A Temporary tax exemption for ertain industrial undertakings B Revoation of exemption in ases of abuse C Basis of assessment of inome from any offie or employment D and 2E [Repealed] F Payments in respet of expenses G Benefits in kind H Cash equivalents of benefits harged under s 2G I Cars available for private use J Car fuel K Pooled ars KA Setions 2F to 2K: supplementary L Mariners foreign earnings M Taxation of members of limited liability ompanies MA Taxation of limited partnerships with legal personality N Deemed residene of ompanies O Assessment where 1986 At ompanies are in atual residene in Isle of Man P Company easing to be 1986 At ompany PA Meaning of distribution Q Charge to tax on realised profit omprised in disount R Meaning of relevant disounted seurity S Meaning of transfer T Redemption to inlude onversion U Other transations deemed to be at market value V Issue of seurities in separate tranhes W Exluded indexed seurities X Gilt strips Y Realised losses on disounted seurities AT 3 of 1970 Page 3

4 Index Inome Tax At Z General interpretation and 4 [Repealed] Assessment of new resident non-orporate taxpayers and 7 [Repealed] A Non-orporate taxpayers: essation B Individuals: death Voluntary pensions liable to tax Temporary absentees to be harged as residents Temporary residents to be harged after six months of residene Assessment of profits of non-residents A Limit on inome hargeable on non-residents to 13 M [Repealed] Valuation of trading stok on essation of trade A to 14D [Repealed] Exemptions, Allowanes and Relief Inomes exempt from inome tax Disablement pensions exempt from tax A [Repealed] B Jurors remuneration: exemption C Maintenane payments: exemption Agriultural soieties exempt from tax Exemptions for friendly soieties A Boards and loal authorities to be exempt from tax Industrial soieties exempt from tax Members of friendly and industrial soieties A to 20F [Repealed] [Repealed] A Interest on ertain Government seurities exempt from tax Easter offerings exempt from tax Certain subsistene allowanes exempt from tax Governor s salary, et, exempt from tax Corporate taxpayers no dedution for distributed inome A Distributed inome: tax redit vouher B Value of a tax redit vouher C Vouher a redit against inome tax [Repealed] Dedution for remuneration of trustees A Provision of reliefs and allowanes for trading losses and apital expenditure [Repealed] Reliefs for ertain apital expenditure Crime-related payments No dedution allowed for apital employed A Dedutions in presribed ases B Expenses defrayed from remuneration C Compensation shemes Page 4 AT 3 of 1970

5 Inome Tax At 1970 Index 31D [Repealed] No dedution allowed for gratuitous allowanes A Redution of Class 4 ontributions Dedutions to be allowed in asertaining taxable inome and liability to inome tax and 34A [Repealed] Personal allowane A Allowane for blind persons B Allowane for disabled persons C Personal allowane for non-residents D Cessation of non-residene E Cessation of residene to 38 [Repealed] [Repealed] A Additional relief in respet of hildren: single persons AA Relief in respet of nursing expenses B Additional relief in respet of hildren: persons living together for the whole year C Additional relief in respet of hildren: persons living together for part of the year D Setions 39A to 39C: supplementary to 43 [Repealed] A Age-Relief: inome support B Age allowane [Repealed] A Dedution for provision for surviving spouse, ivil partner and hildren B Lump sum benefits on retirement to 47 [Repealed] Soial seurity benefits liable for tax A Relief in respet of payments on retirement, et B Statutory redundany payments C Medial insurane: relief D Eligible ontats Retirement annuities (relief for premiums) A Contrats for dependants or life insurane Nature and amount of relief for qualifying premiums A Carry-forward of unused relief under s Relief et for international personal and oupational pension shemes 72 50B Relief for ertain personal and oupational pension shemes C Relief for ertain personal and oupational pension shemes D Charge to tax: unauthorised payments E Supplementary harge on unauthorised payments F Administration Continuation of Exemptions, Allowanes and Relief Amendments as to friendly soieties Purhased life annuities other than retirement annuities AT 3 of 1970 Page 5

6 Index Inome Tax At Treatment of retirement annuities and purhased life annuities Relief from double taxation Tax redits A Relief in respet of repayment of ertain tax redits [Repealed] Relief in respet of tax in other territories Relief on rental inome A Relief on rental inome: pooling Carry forward against subsequent rents Allowanes given to individuals only Allowanes not given to non-residents A Tax treatment of VAT penalties et and repayment supplement Charities 90 61B and 61C [Repealed] D Donations by assoiations to harities E Donations by individuals to harities F Regulations for ss 61D and 61E Returns, et Returns to be returned annually A Cessation of residene: return B Prodution and auditing of aounts C Prodution and auditing of aounts of orporate taxpayer Return in respet of partners A Returns in respet of members of limited liability ompanies B Power to all for douments C Power to all for information relating to benefiial ownership D Falsifiation, et of douments [Repealed] Spouses and ivil partners - separate treatment A Eletion for joint treatment B Conditions for joint treatment C Eletions D Jointly held property E Meaning of living together F Revoation of joint treatment eletion G Cessation of joint treatment eletion H Transfer of unused allowanes, et in year of death I Transfer of unused allowanes in year of marriage or formation of ivil partnership J Supplementary provisions A66 Corporate taxpayers: returns Returns in respet of ompanies Information to be given by employers Return by attorneys, agents and guardians Prinipal and agent to be named in assessment Chargeability of agent of non-resident person Page 6 AT 3 of 1970

7 Inome Tax At 1970 Index 71 Requisition on persons to dedut tax from payments to non-residents [Repealed] Tax deduted based on inome of urrent year Individual remains liable until tax is paid Dedution of tax from payments to non-residents Delivery of lists by persons reeiving inome for other persons Default of agent is default of prinipal Partiulars of taxable payments Returns for persons dying during year of assessment Assistane by rate olletors A Duty to preserve reords Assessment of inome Basis of assessment, et for orporate taxpayers A Assessment of inome tax: non-orporate taxpayers B Aounting periods for trading profits Assessment list Assessment on aepted returns A Current year assessments A84 Enquiries into returns: orporate taxpayers B84 Verifiation of returns: general powers Verifiation of returns A Additional assessments Notie of assessment Assessment in default A Assessment in default: orporate taxpayers Aggrieved person may ontest assessment Inome Tax Commissioners Proedure at sittings of Commissioners Appeal from deision of Commissioners to Staff of Government Division Perjury before Staff of Government Division or Commissioners Entries in assessment list Payment of tax [Repealed] Tax payable in money or stamps Power to Treasury to make regulations A Forms Time for payment of tax by orporate taxpayers A Date when tax is payable B Payment on aount of inome tax C Setion 96B: supplementary Tax a first harge in favour of the Crown Notie to tax defaulters A Distraint for overdue tax B Power to set aside warrants Proeedings for reovery of tax Assessor s ertifiate evidene of taxes and harges in arrear AT 3 of 1970 Page 7

8 Index Inome Tax At Error or mistake in assessment A Error or mistake in assessment: orporate taxpayers Late assessments Protetion of offier when ating without malie Appliation of inome tax Administration Appointments of Assessor, Inspetor and other offiers, et A Unlawful assumption of harater of offier, et B Bribery and ollusion Delivery of douments, et C Power to all for douments, et of taxpayer D Power to all for douments relating to taxpayer E Noties under s 105D: further provisions F S 105D: auditors and tax advisers G Ss 105C - 105F: supplementary Court orders to deliver douments, et H Orders for the delivery of taxpayer s douments I Orders for the delivery of douments relating to taxpayer J Ss 105H and 105I: supplementary K Ss 105H and 105I: noties and proedures L Falsifiation et of douments M Entry with warrant to obtain material N Proedure where douments et are removed O Interpretation of ss 105C to 105N Information onfidential A Dislosure of information between the Assessor and the Colletor of Customs and Exise B Dislosure of information by Department of Soial Care et C Dislosure of information by the Assessor to the Department of Soial Care D Dislosure of information to enforing authorities, et E Dislosure of information to Treasury and Assessor by ertain authorities F Matters supplementary to ss 106C to 106E Repayment of tax A Repayment supplements: orporate taxpayers B Repayment supplements: non-orporate taxpayers Differential tax rates: anti-avoidane 155 A108 Loans to partiipators, et B108 Setion A108: treatment of ertain loans C108 Loans through intermediaries, et D108 Effet of release, et of debt in respet of loan under setion A E108 Returns Definitions 159 F108 Partiipator Page 8 AT 3 of 1970

9 Inome Tax At 1970 Index G108 Assoiate H108 Diretor I108 Assoiated orporate taxpayer J108 Loan reditor Penalties Failing to deliver a return or making untrue return Obstruting offiers False statements made to obtain allowanes Fraudulent onversion of property or making fraudulent statements A Interest on overdue tax B Interest on tax reovered to make good loss due to tax-payer s default Tax return defaulters - ivil penalties C Initial default D Extended default E Mitigation of penalties under setions 111C and 111D F Setions 111C to 111E: supplementary G Amount of penalty H Colletion of penalty I Appeals J Criminal offene: failure to make return Penalty where no other punishment is provided Corporate taxpayers - ivil penalties A Initial default B Extended default C Mitigation of penalties under setions setion 112A or 112B D Setion 112A or 112B: supplementary E Amount of penalty F Amount of penalty: suessive defaults G Penalty notie H Colletion of penalty I Criminal offene: failure to make return J Appeals Proeedings for offenes Onus of proof on defendant Onus of disproving guilty knowledge on defendant Misellaneous Servie of douments Failure of Assessor to at not to invalidate subsequent ation Effet of mistakes A Exlusion of extended limitation period Power of Tynwald to vary rates of allowanes, et, by resolution A Meaning of ontrol in ertain ontexts B Territorial sea C Conneted persons D Power to pay rewards AT 3 of 1970 Page 9

10 Index Inome Tax At E Beginning and ending of aounting periods F Powers of Assessor in doubtful ases G Publi douments to take aount of ivil partnerships Definitions [Repealed] Short title Commenement SCHEDULE RETIREMENT ANNUITIES - AMOUNT OF RELIEF FOR PERSONS OVER FIFTY 185 SCHEDULE 1A 185 FORM OF WARRANT FOR DISTRAINT FOR OVERDUE INCOME TAX 185 SCHEDULE 1B 186 TAXATION IN RESPECT OF CARS AND FUEL 186 SCHEDULE FORM OF DECLARATION TO BE MADE BY THE ISLE OF MAN INCOME TAX COMMISSIONERS 187 SCHEDULE 2A 188 PETROLEUM EXPLORATION AND EXPLOITATION 188 SCHEDULE ENDNOTES 193 TABLE OF LEGISLATION HISTORY 193 TABLE OF RENUMBERED PROVISIONS 193 TABLE OF ENDNOTE REFERENCES 193 Page 10 AT 3 of 1970

11 Inome Tax At 1970 Setion 1 i e INCOME TAX ACT 1970 Reeived Royal Assent: 24 Marh 1970 Passed: 19 May 1970 Commened: 19 May 1970 & s 123(2) AN ACT to onsolidate the Inome Tax Ats. GENERAL NOTES 1. The maximum fines in this At are as inreased by the Fines At 1986 and by the Criminal Justie (Penalties, Et.) At 1993 s Referenes to a Board of Tynwald are to be onstrued as referenes to a Department in aordane with the Government Departments At 1987 s Referenes to the Treasurer are to be onstrued in aordane with the Treasury At 1985 s See SD352/09 Rules of the High Court of Justie 2009 Sh 15.1 para 3 reprodued below: 3. In any statutory provision a referene to a petition of doleane shall be onstrued as an appliation to the ourt in aordane with Chapter 9 of Part 13 (review of detention) rule (appeal by way of ase stated), or () Chapter 2 of Part 14 (review of lawfulness of deision et), as the ase may require. Liability to Inome Tax 1 Imposition of inome tax [1946/4; 1962/1] (1) From and after the oming into fore of this At, there shall be raised, levied, olleted, and paid, in the manner hereinafter in this At provided, an annual tax, to be alled inome tax on all inomes derived from property, professions, trade, salaries, wages, pensions, annuities, fees, emoluments, ommissions, employments, or voations, or from any soure whatsoever. AT 3 of 1970 Page 11

12 Setion 1 Inome Tax At 1970 (2) In the ase of an individual who is resident in the Island, inome tax shall be payable in respet of every inome tax year at the lower rate on every pound of taxable inome up to and inluding the threshold; and at a presribed rate on every pound of taxable inome in exess of the threshold. 1 (2A) All other persons who are resident in the Island shall pay inome tax at the presribed rate on every pound of taxable inome. 2 (3) In the ase of a person who is not resident in the Island, inome tax shall be payable in respet of every inome tax year at the presribed rate on every pound of Manx inome. 3 (3A) In this setion the lower rate means suh rate of inome tax as may be determined by order made by the Treasury as being the lower rate; Manx inome means inome derived from any trade, profession, employment or voation arried on in the Island and from any other soure whatsoever within the Island; presribed rate means suh rate of inome tax as may be determined by order made by the Treasury; the threshold means suh amount of taxable inome as may be determined by order made by the Treasury as being the threshold for the payment of the presribed rate under subsetion (2). 4 (3B) An order under this setion () (d) may speify different rates for different provisions, purposes or different lasses of person and in respet of inome of different lasses, amounts or soures; may require that tax shall be payable at suh rate as is speified in the order in respet of the inome of a person even if a provision of the Inome Tax Ats or any other enatment (whih shall be speified in the order) (i) (ii) exempts or enables the exemption of suh person or inome from payment of inome tax (for example managed banks and exempt insurane ompanies); or presribes or enables the presription of a rate of inome tax in respet of suh person or inome different to that speified in the order (for example international ompanies); may speify a zero inome tax rate; may, where a zero rate is speified under paragraph (), speify an alternative rate to apply in plae of the zero rate in the event that suh irumstanes as are speified in the order arise; Page 12 AT 3 of 1970

13 Inome Tax At 1970 Setion 2 (e) may make the appliation of any rate subjet to onditions; (f) may inlude supplemental and transitional provisions. 5 (3BA) An order under this setion may inlude provision for the protetion of the revenue and for the exlusion of group relief in ases where any inome of a surrendering ompany is assessed to inome tax at a different rate to any inome of a laimant ompany and aordingly, suh an order may modify the operation of Shedule 2 to the Inome Tax At (3C) An order under this setion may inlude provision repealing or amending any provision of an enatment (other than this setion) whih is inonsistent with, or is unneessary or requires modifiation in onsequene of, the order; or without prejudie to the generality of paragraph, whih is speified in an order under subsetion (3B) or is supplementary to suh a provision. 7 (3D) Subsetion (3B) shall not limit the operation of setion 26 of the Interpretation At 1976 (onstrution of provisions as to exerise of powers and duties). 8 (3E) An order under this setion shall not ome into operation unless it is approved by Tynwald. 9 (4) Every person reeiving inome or to whom inome shall arue shall, in respet of suh inome, pay an annual inome tax as herein provided. 1A [Repealed] 10 2 Inome on whih tax is payable [1946/5(1)] (1) The inome in respet of whih inome tax is imposed by this At shall, subjet to the exeptions, exemptions, and provisions hereinafter ontained, inlude inome arising or aruing to any person residing in the Isle of Man and derived from the annual profits or gains of or in respet of or from any kind of property whatsoever, whether situate or being in the Isle of Man or elsewhere, or derived from the annual profits or gains of or in respet of or from any profession, trade, employment, or voation, whether they shall be respetively arried on in the Isle of Man or elsewhere; inome arising or aruing to any person not residing in the Isle of Man, whether a subjet of Her Majesty or not, and derived from the annual profits or gains of or in respet of or from any kind of property whatsoever in the Isle of Man, or derived from the AT 3 of 1970 Page 13

14 Setion 2 Inome Tax At 1970 () (d) (e) annual profits or gains of or in respet of or from any profession, trade, employment, or voation arried on in the Isle of Man; inome arising or aruing to any person whether residing in the Isle of Man or not, and derived from any publi offie or employment of profit or from any pension payable out of the publi revenue of the Isle of Man; inome arising or aruing to any person residing in the Isle of Man and derived from pensions reeived from any soure out of the Isle of Man; inome arising from gratuities made to or reeived by any employed person by reason of or in the ourse of his employment; (f) [Repealed] 11 (g) and generally inome arising or aruing to any person residing in the Isle of Man and derived from any soure whatsoever in or out of the Isle of Man and inome arising or aruing to any person not residing in the Isle of Man, whether a subjet of Her Majesty or not, and derived from any soure whatsoever in the Isle of Man. 12 Profit from export sales [1946/5(4)] (2) Profit derived from anything produed in or imported into the Isle of Man, whih is sold or exported out of the Isle of Man, whether suh profit is derived in the Isle of Man or not, shall be deemed to be inome derived from a soure in the Isle of Man. 2A Temporary tax exemption for ertain industrial undertakings (1) The powers onferred by this setion may only be exerised if the Treasury is satisfied that suh exerise () is in the interests of the eonomy of the Island; and is neessary for the purpose of establishing or developing any industrial undertaking in the Isle of Man; and will enable the undertaking to provide additional produtive employment in the Island. (2) The Treasury may, after onsultation with the Department of Eonomi Development, by resolution exempt for a period of up to 5 years, the whole or part of the profits or inome of any industrial undertaking from liability to tax under the Inome Tax Ats. 13 (3) The exemption of the profits or inome of an industrial undertaking from liability to tax onferred under subsetion (2) above, may, on the diretion of the Treasury, made after onsultation with the Department of Eonomi Development, inlude an exemption, in respet of Page 14 AT 3 of 1970

15 Inome Tax At 1970 Setion 2 distributions of suh profits and inome to shareholders resident outside the Island, from liability to inome tax under the Inome Tax Ats. 14 (4) Where an exemption under this setion eases to have effet, the industrial undertaking onerned shall, for the purposes of the Inome Tax Ats, be treated as if it had ommened business in the Island on the date of essation, but only in respet of the soure of the inome or profits of the undertaking whih were exempted from inome tax under this setion. (5) An industrial undertaking whih has been exempted from inome tax under this setion shall, when required by the Assessor, produe to him the balane sheet and the profit and loss aount of the ompany for any year of assessment and suh aounting reords and other douments as he may speify. (6) Exemption from inome tax under this setion shall not affet the liability of an industrial undertaking to dedut and aount for inome tax under the Inome Tax (Instalment Payments) At (7) In this setion industrial undertaking has the meaning given by setion 6 of the Industry Board At B 2C Revoation of exemption in ases of abuse (1) If the Treasury is of the opinion that any exemption granted under setion 2A of this At is being used to avoid or redue the liability to inome tax of any person, other than the industrial undertaking onerned, resident in the Island; or an industrial undertaking fails to omply with a requirement of the Assessor under subsetion (5) of that setion, the Treasury may resind every suh exemption. (2) Any person who is aggrieved by a deision under subsetion (1) above, to resind an exemption, shall be entitled to appeal to the Commissioners on the ground that the exemption was not being used to avoid or redue the liability to inome tax of any other person and the Commissioners may reverse, vary or onfirm any suh deision. 16 Basis of assessment of inome from any offie or employment (1) Notwithstanding setion 81 of this At, where any inome attributable to remuneration arues to or is reeived by an individual in a year of assessment, the Assessor shall, in respet of that year, assess suh inome on the amount of the remuneration reeived or arued in that year. (2) In this setion remuneration means any inome arising AT 3 of 1970 Page 15

16 Setion 2 Inome Tax At 1970 in respet of any remuneration from any offie, or employment held by the individual; or in respet of any pension, superannuation, or other allowane, deferred pay, or ompensation for loss of offie given in respet of the past servies of the individual, or of the husband or parent of the individual, in any offie or employment, or given to the individual in respet of past servies of any deeased person, whether the individual, husband or parent of the individual shall have ontributed to suh pension, superannuation, allowane, or deferred pay or not, but shall not inlude any inome speified in paragraph above whih is paid by a person outside the Island. (3) The Treasury may by order amend the definition of remuneration ontained in subsetion (2) of this setion. (4) An order under subsetion (3) of this setion shall not ome into operation until it is approved by Tynwald. 17 2D and 2E [Repealed] 18 2F Payments in respet of expenses [P1988/1/153] (1) Subjet to the provisions of this setion and setions 2G to 2K, where in any year by reason of a person s employment there are paid to him in respet of expenses any sums whih, apart from this setion, are not hargeable to tax as his inome, those sums are to be treated as inome attributable to the employment and aordingly hargeable to inome tax. (2) Subsetion (1) is without prejudie to any laim for dedutions under setion 31 or 31A of this At. (3) The referene in subsetion (1) to sums paid in respet of expenses inludes any sums put at the employee s disposal by reason of his employment and paid away by him. 19 2G Benefits in kind [P1988/1/154] (1) Where in any year by reason of a person s employment there is provided for him, or for others being members of his family or household, any benefit to whih this setion applies; and the ost of providing the benefit is not (apart from this setion) hargeable to tax as his inome, Page 16 AT 3 of 1970

17 Inome Tax At 1970 Setion 2 there is to be treated as inome attributable to the employment, and aordingly hargeable to inome tax, an amount equal to whatever is the ash equivalent of the benefit. (2) The benefits to whih this setion applies are aommodation, entertainment, domesti or other servies, and other benefits and failities of whatsoever nature (whether or not similar to any of those mentioned above in this subsetion), exluding however any benefit hargeable under setion 2I or 2J. 20 (3) For the purposes of this setion and setion 2H the persons providing a benefit are those at whose ost the provision is made. (4) The Treasury may by order provide for exemptions from this setion. (5) An order under subsetion (4) shall not ome into operation until its approval by Tynwald. 21 2H Cash equivalents of benefits harged under s 2G [P1988/1/156] (1) The ash equivalent of any benefit hargeable to tax under setion 2G is an amount equal to the ost of the benefit, less so muh (if any) of it as is made good by the employee to those providing the benefit. (2) Subjet to the following subsetions, the ost of a benefit is the amount of any expense inurred in or in onnetion with its provision, and (here and in those subsetions) inludes a proper proportion of any expense relating partly to the benefit and partly to other matters. (2A) Where the benefit onsists in the transfer of an asset by any person, and sine that person aquired or produed the asset it has not depreiated; and subsetions (4) and (5) do not apply, the ost of the benefit is deemed to be the greater of either (i) the market value of the asset at the time of transfer; or (ii) the ost of the asset to that person. 22 (3) Where the benefit onsists in the transfer of an asset by any person, and sine that person aquired or produed the asset it has been used or has depreiated, the ost of the benefit is deemed to be the market value of the asset at the time of transfer. (4) Where the asset referred to in subsetion (3) is not a ar and before the transfer a person (whether or not the transferee) has been hargeable to tax in respet of the asset in aordane with subsetion (5), the amount whih under subsetion (3) is deemed to be the ost of the benefit shall (if apart from this subsetion it would be less) be deemed to be AT 3 of 1970 Page 17

18 Setion 2 Inome Tax At 1970 the market value of the asset at the time when it was first applied (by those providing the benefit in question) for the provision of any benefit for a person, or for members of his family or household, by reason of his employment, less the aggregate of the amounts taken into aount as the ost of the benefit in harging tax in aordane with subsetion (5) in the year or years up to and inluding that in whih the transfer takes plae. (5) Where the benefit onsists in an asset being plaed at the employee s disposal, or at the disposal of others being members of his family or household, for his or their use (without any transfer of the property in the asset), or of its being used wholly or partly for his or their purposes, then the ost of the benefit in any year is deemed to be the annual value of the use of the asset asertained under subsetion (6); plus the total of any expense inurred in or in onnetion with the provision of the benefit exluding (i) (ii) the expense of aquiring or produing it inurred by the person to whom the asset belongs; and any rent or hire harge payable for the asset by those providing the benefit. (6) Subjet to subsetion (7), the annual value of the use of the asset, for the purposes of subsetion (5) in the ase of land, is its annual value determined in aordane with subsetion (9); and in any other ase is 20 per ent. of its market value at the time when it was first applied (by those providing the benefit in question) in the provision of any benefit for a person, or for members of his family or household, by reason of his employment. (7) Where there is payable, by those providing the benefit, any sum by way of rent or hire-harge for the asset, the annual amount of whih is equal to, or greater than, the annual value of the use of the asset as asertained under subsetion (6), that amount shall be substituted for the annual value in subsetion (5). (8) From the ash equivalent there are dedutible in eah ase under setion 31 suh amounts (if any) as would have been so dedutible if the ost of the benefit had been inurred by the employee out of his inome attributable to the employment. (9) For the purposes of subsetion (6), the annual value of land shall be taken to be the rent whih might reasonably be expeted to be obtained on a letting from year to year if the tenant undertook to pay all usual Page 18 AT 3 of 1970

19 Inome Tax At 1970 Setion 2 tenant s rates and taxes, and if the landlord undertook to bear the osts of the repairs and insurane, and the other expenses, if any, neessary for maintaining the subjet of the valuation in a state to ommand that rent. (10) The ash equivalent of a benefit referred to in setion D108(3) (disappliation of setion D108 where an amount is treated as inome attributable to employment) is a sum equal to the amount released or written off plus an amount equal to suh proportion of the amount of the loan or advane released or written off as orresponds to the relevant rate presribed for the purposes of this setion under setion 1 of this At in fore for the year of assessment in whih the loan or advane was released or written off I Cars available for private use [P1988/1/157] (1) Where in any year, a ar is made available (without any transfer of the property in it) either to a person or to others being members of his family or household, and it is so made available by reason of his employment and it is in that year available for his or their private use; and the benefit of the ar is not (apart from this setion) hargeable to tax as the employee s inome, there is to be treated as inome attributable to the employment, and aordingly hargeable to inome tax, an amount equal to whatever is the ash equivalent of that benefit in that year. (2) Subjet to the provisions of this setion, the ash equivalent of that benefit is to be asertained from the table in Part I of Shedule 1B. 25 (3) Where in any year the benefit of a ar is hargeable to tax under this setion as the employee s inome he shall not be taxable in respet of the disharge of any liability of his in onnetion with the ar; under setion 2F in respet of any payment made to him in respet of expenses inurred by him in onnetion with the ar. (4) The Treasury may by order taking effet from the beginning of any inome tax year after it is made amend the table in Part I of Shedule 1B or substitute a different table; or provide for the ash equivalent of a benefit under this setion or setion 2J to be asertained in aordane with the provisions of the order (by referene to any riteria presribed in the order or otherwise) and not in aordane with the table in Part I of Shedule 1B. 26 AT 3 of 1970 Page 19

20 Setion 2 Inome Tax At 1970 (5) Part II of Shedule 1B has effet with respet to the appliation of the table in Part I; and 27 for the redution of the ash equivalent under this setion in ases where the ar has not been available for the whole of the relevant year or the employee makes any payment for the use of it. 28 (6) An order under subsetion (4) shall not ome into operation until it is approved by Tynwald. 29 2J Car fuel [P1988/1/158] (1) Where in any year fuel is provided by reason of a person s employment for a ar whih is made available as mentioned in setion 21, an amount equal to whatever is the ash equivalent of that benefit in that year shall be treated as inome attributable to the employment and, aordingly, shall be hargeable to inome tax. (2) Subjet to the provisions of this setion, unless an order under setion 2I(4) provides for the ash equivalent of a benefit under this setion to be asertained in aordane with the order, the ash equivalent of that benefit is to be asertained from the table in Part I of Shedule 1B. 30 (3) Without prejudie to the generality of subsetion (1), fuel is provided for a ar if () (4) [Repealed] 31 any liability in respet of the provision of fuel for the ar is disharged; a non-ash vouher or a redit-token is used to obtain fuel for the ar or money whih is spent on suh fuel; any sum is paid in respet of expenses inurred in providing fuel for the ar. (5) Where paragraph 2 of Part II of Shedule 1B applies to redue the ash equivalent of the benefit of the ar for whih the fuel is provided, the same redution shall be made to the ash equivalent of the benefit of the fuel asertained under subsetion (2). 32 (6) If in the relevant year the employee is required to make good to the person providing the fuel the whole of the expense inurred by him in or in onnetion with the provision of fuel for his private use and he does so; or the fuel is made available only for business travel; the ash equivalent is nil. Page 20 AT 3 of 1970

21 Inome Tax At 1970 Setion (7) [Repealed] 2K Pooled ars [P1988/1/159] (1) This setion applies to any ar in the ase of whih the Assessor is satisfied (whether on a laim under this setion or otherwise) that it has for any year been inluded in a ar pool for the use of the employees of one or more employers. (2) A ar is to be treated as having been so inluded for a year if () in that year it was made available to, and atually used by, more than one of those employees and, in the ase of eah of them, it was made available to him by reason of his employment but it was not in that year ordinarily used by one of them to the exlusion of the others; and in the ase of eah of them any private use of the ar made by him in that year was merely inidental to his other use of it in the year; and it was in that year not normally kept overnight on or in the viinity of any residential premises where any of the employees was residing, exept while being kept overnight on premises oupied by the person making the ar available to them. (3) Where this setion applies to a ar, then for the year in question the ar is to be treated under setions 2G and 2I as not having been available for the private use of any of the employees. (4) A laim under this setion in respet of a ar for any year may be made by any one of the employees mentioned in subsetion (2) (referred to below as the employees onerned ) or by the employer on behalf of all of them. (5) On an appeal against the deision of the Assessor on a laim under this setion all the employees onerned may take part in the proeedings, and the determination of the Commissioners or the High Court shall be binding on all those employees, whether or not they have taken part in the proeedings. (6) Where an appeal against the deision of the Assessor on a laim under this setion has been determined, no appeal against the Assessor s deision on any other suh laim in respet of the same ar and the same year shall be entertained. 35 2KA Setions 2F to 2K: supplementary In setions 2F to 2K, employment means any offie or employment, the remuneration from whih is assessed under setion 2C, and aordingly, AT 3 of 1970 Page 21

22 Setion 2 Inome Tax At 1970 referenes to an employee or to an employer inlude referenes to the holder of an offie or to the person under whom the offie is held. 36 2L Mariners foreign earnings [P1988/1/132(4); 193(1) and Sh 12] (1) Where in any year of assessment the duties of employment as a mariner are performed wholly or partly outside the Isle of Man; and any of those duties are performed in the ourse of a qualifying period whih falls wholly or partly in that year and onsists of at least 365 days, then, in harging tax under the Inome Tax Ats on the amount of the remuneration from that employment attributable to the period, or to so muh of it as falls in that year of assessment, there shall be allowed a dedution equal to the whole of that amount. 37 (1A) For the purposes of this setion, the amount of the remuneration for a year of assessment from any employment shall be taken to be the amount remaining after any allowable expenses, dedutions and reliefs attributable to or arising in respet of that remuneration; and the dedution of an amount equivalent to the amount of a single person s personal allowane under setion 35(3). 38 (2) For the purposes of subsetion (1), a qualifying period is a period of onseutive days whih either onsists entirely of days of absene from the Isle of Man; or onsists partly of suh days and partly of days inluded under subsetion (3). (3) Where, in the ase of any person, a period onsisting entirely of days of absene from the Isle of Man ( the relevant period ) omes to an end and there have previously been one or more qualifying periods, the relevant period and the qualifying period (or, if more than one, the last qualifying period) together with the intervening days between those periods shall be treated as a single qualifying period if there are no more than 183 intervening days; and the number of days in the resulting period whih are not days of absene from the Isle of Man does not exeed one half of the total number of days in that period. (4) For the purposes of subsetion (1), remuneration from employment as a mariner whih is attributable to a qualifying period inludes any remuneration from that employment for a period of leave immediately Page 22 AT 3 of 1970

23 Inome Tax At 1970 Setion 2 following that period but not so as to make any remuneration for one year of assessment remuneration for another. (5) For the purposes of this setion, any duties whih a person performs on a vessel shall be treated as performed outside the Isle of Man where the vessel is engaged on a voyage beginning and ending outside the Isle of Man whih extends to a plae outside the British Isles (but exlusive of any part of it whih extends to the Isle of Man); or a voyage beginning or ending in the Isle of Man whih extends to a plae outside the British Isles (but exlusive of any part of it whih begins or ends in the Isle of Man), but not otherwise. (6) Where the duties of an employment fall to be performed in the Isle of Man in the year of assessment, subsetion (7) shall apply for the purposes of subsetion (1). (7) In any ase to whih this subsetion applies, any duties performed outside the Isle of Man shall be treated as performed in the Isle of Man if the performane is merely inidental to the performane of other duties in the Isle of Man. (8) For the purposes of this setion a person shall not be regarded as absent from the Isle of Man on any day unless he is so absent at the end of it. (9) In this setion employment as a mariner means employment onsisting of the performane of duties for the working of a vessel (or of suh duties and of others inidental to them); remuneration has the meaning given by setion 2C of the Inome Tax At 1970; vessel means any desription of water raft whih has its own means of mehanial propulsion but does not inlude an offshore installation within the meaning of setion 1(3) of the Mineral Workings (Offshore Installations) (Isle of Man) At 1974 whether on or off station; any submersible or semi-submersible raft whih is onstruted or adapted (i) (ii) (iii) to undertake drilling operations at sea; or for purposes whih are auxiliary to suh operations; or to transport installations and rigs; voyage means a voyage from the port of departure to the next following port of all whether or not it is the ultimate destination of the vessel. 39 AT 3 of 1970 Page 23

24 Setion 2 Inome Tax At M Taxation of members of limited liability ompanies (1) Notwithstanding the provisions of the Inome Tax Ats relating to the taxation of a body orporate, for the purposes of those Ats a limited liability ompany shall be treated in all respets as if it is a partnership; and eah member of a limited liability ompany shall be treated as a partner. (2) As a onsequene of subsetion (1) a limited liability ompany shall not be liable to pay inome tax on its profits; and eah member shall be liable to pay inome tax at the appropriate rate in respet of his whole inome, inluding his share of the profits of the limited liability ompany. (3) Nothing in this setion shall operate to release or extinguish any liability of an attorney or agent to pay Manx inome tax as attorney or agent of the individual members of a limited liability ompany. (4) Without prejudie to the generality of subsetions (1) and (2), no dedutions, allowanes or reliefs whih an be taken into aount in the alulation of the taxable inome of a body orporate; and whih, but for those subsetions, ould have been taken into aount in the alulation of the taxable inome of a limited liability ompany, shall be allowed or taken into aount in the alulation of the profits of a limited liability ompany or the portion of the taxable inome of a member arising from that member s share of the profits of the ompany. (5) Without prejudie to the foregoing provisions of this setion, setion 63 of this At shall not apply in respet of a limited liability ompany. (6) This setion shall not affet the liability of a limited liability ompany to dedut and aount for tax under the Inome Tax (Instalment Payments) At 1974; Part 3 of the Inome Tax At MA Taxation of limited partnerships with legal personality (1) A limited partnership with legal personality is to be treated as a partnership (and not as a orporate taxpayer) for the purposes of the Inome Tax Ats and eah member of the partnership is to be treated as a partner. (2) Consequently Page 24 AT 3 of 1970

25 Inome Tax At 1970 Setion 2 () a limited partnership with legal personality is not liable to pay inome tax on its profits; eah partner is liable to pay inome tax at the appropriate rate in respet of his or her whole inome, inluding his or her share of the profits of the partnership; and setion 63 (return in respet of partners) applies. (3) Nothing in this setion releases or extinguishes any liability of an attorney or agent to pay Manx inome tax as attorney or agent of the partners of the partnership; affets the liability of a limited partnership to dedut and aount for tax under (i) (ii) the Inome Tax (Instalment Payments) At 1974; or Part 3 of the Inome Tax At 1989 (subontrators in the onstrution industry). (4) In this setion, a limited partnership with legal personality means a limited partnership (within the meaning of Part II of the Partnership At 1909 (limited partnerships)) whih has legal personality as a result of ompliane with setion 48B or 48C of the Partnership At N 2O Deemed residene of ompanies (1) For the purposes of the Inome Tax Ats all ompanies inorporated after 5 April 1999; and all ompanies inorporated before 6 April 1999 whih are not 1986 At ompanies, are deemed to be resident in the Isle of Man. (2) In this setion, ompany has the meaning given in setion 341(1) of the Companies At 1931 and inludes a 2006 ompany. (3) In this At, 1986 At ompany means a ompany whih is a nonresident ompany within the meaning of the Non-Resident Company Duty At (4) In this At, 2006 ompany means a ompany inorporated, ontinued or re-registered under the Companies At Assessment where 1986 At ompanies are in atual residene in Isle of Man (1) The Assessor may, in respet of any year of assessment, assess the inome of a 1986 At ompany if he is satisfied that the ompany is in fat resident in the Isle of Man; or inome arises or arues to the ompany and is AT 3 of 1970 Page 25

26 Setion 2 Inome Tax At 1970 (i) (ii) derived from the annual profits or gains of or in respet of or from any kind of property whatsoever in the Isle of Man; or derived from the annual profits or gains of or in respet of or from any profession, trade, employment, or voation arried on in the Isle of Man. (2) For the purposes of this setion, a 1986 At ompany shall not be treated as being resident in the Isle of Man by reason only of the fat that a person who is resident in the Isle of Man is appointed as the liquidator of the ompany. (3) Where a ompany pays non-resident ompany duty under the Non- Resident Company Duty At 1986, the amount of duty paid by that ompany in any year of assessment shall, exept in the ase of a ompany to whih setion 2P(1) applies, be set against or refunded from any inome tax payable or paid by the ompany for that year. 42 2P Company easing to be 1986 At ompany (1) Where in any year of assessment a 1986 At ompany eases to be suh, the ompany shall not be assessed to inome tax (exept as provided by setion 20(1)) in respet of inome whih arises or arues to it for that part of the year in whih it is a 1986 At ompany. (2) For the purposes of the Inome Tax Ats a 1986 At ompany shall be treated as beoming resident in the Isle of Man on the date on whih it eases to be a 1986 At ompany. 43 2PA Meaning of distribution (1) Inome arising or aruing to any person residing in the Island and derived from any inome distribution paid by a orporate taxpayer resident in the Island shall be inome in respet of whih inome tax is imposed by this At for the purposes of setion 2. (2) Where an inome distribution takes a nonmonetary form, an amount equal to whatever is the ash equivalent of the inome distribution is inome in respet of whih inome tax is imposed by this At for the purposes of setion 2. (3) The ash equivalent of an inome distribution is deemed to be the market value of the asset transferred at the time of transfer (where an asset is transferred by a orporate taxpayer) or the amount of debt inurred (where the orporate taxpayer inurs a debt). (4) [Repealed] 44 (5) In this setion distribution means Page 26 AT 3 of 1970

27 Inome Tax At 1970 Setion 2 the diret or indiret transfer of any assets of a orporate taxpayer, other than the orporate taxpayer s own shares, to or for the benefit of a member of the orporate taxpayer; or the inurring of a debt by a orporate taxpayer to or for the benefit of a member of the orporate taxpayer, in relation to shares held by a shareholder, or the entitlements to distributions of a member who is not a shareholder, and whether by means of (i) (ii) (iii) (iv) or otherwise; the payment of a dividend; the purhase of an asset; the purhase, redemption or other aquisition of shares; the transfer or assignment of indebtedness, group shall be onstrued in aordane with Shedule 2 to the Inome Tax At 1980; inome distribution means a distribution made from the orporate taxpayer s inome from its urrent aounting period; or the undistributed profits of the orporate taxpayer from an earlier aounting period; member shall be onstrued in aordane with setion (6) This setion does not prejudie the generality of setion Q Charge to tax on realised profit omprised in disount [P1996/8/ Sh13 para 1] (1) Where a person realises the profit from the disount on a relevant disounted seurity, that person shall be harged to inome tax on that profit. (2) For the purposes of this setion and setions 2R to 2Z (referred to olletively in this setion and those setions as this Part ) a person realises the profit from the disount on a relevant disounted seurity where that person transfers suh a seurity or beomes entitled, as the person holding the seurity, to any payment on its redemption; and the amount payable on the transfer or redemption exeeds the amount paid by that person in respet of the aquisition of the seurity. (3) For the purposes of this Part the profit shall be taken AT 3 of 1970 Page 27

28 Setion 2 Inome Tax At 1970 to be equal to the amount of the exess redued by the amount of any relevant osts; and to arise, for the purposes of inome tax, in the year of assessment in whih the transfer or redemption takes plae. (4) In this setion relevant ost, in relation to a seurity that is transferred or redeemed, are all the following osts the osts inurred in onnetion with the aquisition of the seurity by the person making the transfer or, as the ase may be, the person entitled to a payment on the redemption; and the osts inurred by that person in onnetion with the transfer or redemption of the seurity; and for the purposes of this Part osts falling within paragraph shall not be regarded as amounts paid in respet of the aquisition of a seurity. 47 2R Meaning of relevant disounted seurity [P1996/8/ Sh13 para 3] (1) Subjet to subsetion (2) and setion 2X(1), in this Part relevant disounted seurity means any seurity whih (whenever issued) is suh that taking the seurity as at the time of its issue, and assuming redemption in aordane with its terms, the amount payable on redemption is an amount involving a deep gain or might be an amount whih would involve suh a gain. (2) The following are not relevant disounted seurities for the purposes of this Part () (d) (e) (f) shares in a ompany; gilt-edged seurities that are not strips; exluded indexed seurities; life assurane poliies; apital redemption poliies; and subjet to setion 2V, seurities issued (at whatever time) under the same prospetus as other seurities whih have been issued previously but (disregarding that setion) are not themselves relevant disounted seurities. (3) For the purposes of this Part the amount payable on redemption of a seurity involves a deep gain if the issue prie is less than the amount so payable; and the amount by whih it is less represents more than the relevant perentage of the amount so payable. Page 28 AT 3 of 1970

29 Inome Tax At 1970 Setion 2 (4) In this setion the relevant perentage, in relation to the amount payable on redemption of a seurity, means the perentage figure equal, in a ase where the period between the date of issue and the date of redemption is less than thirty years, to one half of the number of years between those dates; and in any other ase, 15 per ent; and for the purposes of this setion the fration of a year to be used for the purposes of paragraph in a ase where the period mentioned in that paragraph is not a number of omplete years shall be alulated by treating eah omplete month, and any remaining part of a month, in that period as one twelfth of a year. (5) Referenes in this setion to redemption do not inlude referenes to any redemption whih may be made before maturity otherwise than at the option of the holder of the seurity; but in the ase of a seurity that is apable of redemption at the option of the holder before maturity, shall have effet as referenes to the earliest oasion on whih the holder of the seurity may require the seurity to be redeemed. (6) For the purposes of this setion the amount payable on redemption shall not be taken to inlude any amount payable on that oasion by way of interest. 48 2S Meaning of transfer [P1996/8/ Sh13 para 4] (1) Subjet to subsetion (2), in setions 2Q to 2Z referenes to a transfer, in relation to a seurity, are referenes to any transfer of the seurity by way of sale, exhange, gift or otherwise. (2) Where an individual who is entitled to a relevant disounted seurity dies, then for the purposes of this Part () that individual shall be treated as making a transfer of the seurity immediately before death; that individual shall be treated as obtaining in respet of the transfer an amount equal to the market value of the seurity at the time of the transfer; and that individual s personal representatives shall be treated as aquiring the seurity for that amount on the death of the individual. (3) For the purposes of this Part a transfer or aquisition of a seurity made in pursuane of an agreement shall be deemed to take plae at the time when the agreement is made, if the person to whom the transfer is made, AT 3 of 1970 Page 29

30 Setion 2 Inome Tax At 1970 or who makes the aquisition, beomes entitled to the seurity at that time. (4) If an agreement is onditional, whether on the exerise of an option or otherwise, it shall be taken for the purposes of this setion to be made when the ondition is satisfied (whether by the exerise of the option or otherwise). (5) This setion is without prejudie to setion 2X(2) to (4). 49 2T Redemption to inlude onversion [P1996/8/ Sh13 para 5] (1) This setion applies where a relevant disounted seurity is extinguished by being onverted, in pursuane of rights onferred by the seurity, into shares in a ompany or into any other seurities (inluding other relevant disounted seurities). (2) For the purposes of this Part the onversion shall be deemed to onstitute the redemption of the seurity whih is extinguished; and to involve a payment on redemption of an amount equal to whatever, at the time of the onversion, is the market value of the shares or other seurities into whih the seurity in question is onverted. (3) This setion does not apply to an exhange to whih setion 2X applies. 50 2U Other transations deemed to be at market value [P1996/8/ Sh13 para 9] (1) This setion applies where a relevant disounted seurity is transferred from one person to another in a ase in whih the transfer is made for a onsideration whih onsists of or inludes onsideration not in money or money s worth; or the transfer is made otherwise than by way of a bargain made at arm s length. (2) For the purposes of this Part the person making the transfer shall be treated as obtaining in respet of it an amount equal to the market value of the seurity at the time of the transfer, and the person to whom the transfer is made shall be treated as paying in respet of the aquisition of the seurity an amount equal to that market value. 51 Page 30 AT 3 of 1970

31 Inome Tax At 1970 Setion 2 2V Issue of seurities in separate tranhes [P1996/8/ Sh13 para 10] (1) In a ase where () none of the seurities issued on the oasion of the original issue of seurities under a partiular prospetus would be a relevant disounted seurity apart from this setion, some of the seurities subsequently issued under the prospetus would be relevant disounted seurities apart from setion 2R(2)(f), and there is a time (whether before, at or after the beginning of the year of assessment ommening on 6 April 2005) when the aggregate nominal value as at that time of the seurities falling within paragraph exeeds the aggregate nominal value as at that time of the seurities whih have been issued under the prospetus and do not fall within that paragraph, subsetion (2) shall apply in relation to every seurity whih has been or is issued under the prospetus at any time (whether before, at or after the time mentioned in paragraph ()). (2) As regards any event ourring in relation to the seurity after the time mentioned in subsetion (1)(), this Part shall have effet as if the seurity were a relevant disounted seurity; and had been aquired as suh (whatever the time of its aquisition). (3) For the purposes of subsetion (2) events, in relation to a seurity, inlude anything onstituting a transfer, redemption or aquisition for the purposes of this Part. 52 2W Exluded indexed seurities [P1996/8/ Sh13 para 13] (1) For the purposes of this Part a seurity is an exluded indexed seurity if the amount payable on redemption is linked to the value of assets. (2) For the purposes of this setion an amount is linked to the value of assets if, in pursuane of any provision having effet for the purposes of the seurity, it is equal to an amount determined by applying a relevant perentage hange in the value of assets to the amount for whih the seurity was issued. (3) In subsetion (2) the referene to a relevant perentage hange in the value of assets is a referene to the amount of the perentage hange (if any) over the relevant period in the value of assets of any partiular desription or in any index of the value of any suh assets. (4) In subsetion (3) the relevant period means AT 3 of 1970 Page 31

32 Setion 2 Inome Tax At 1970 (5) If () (d) he period between the time of the issue of the seurity and its redemption; or any other period in whih almost all of that period is omprised and whih differs from that period exlusively for purposes onneted with giving effet to a valuation in relation to rights or liabilities under the seurity. there is a provision whih, in the ase of the amount payable on the redemption of any seurity, falls within subsetion (2), that provision is made subjet to any other provision applying to the determination of that amount, that other provision is to the effet only that that amount must not be less than a speified perentage of the amount for whih the seurity is issued, and the speified perentage is not more than 10 per ent, that other provision shall be disregarded in determining for the purposes of this setion whether the amount payable on redemption is linked to the value of assets. (6) For the purposes of this setion neither the retail pries index, nor any similar general index of pries published by the government of any ountry or territory or by the agent of any suh government, shall be taken to be an index of the value of assets. 53 2X Gilt strips [P1996/8/ Sh13 para 14] (1) Every strip is a relevant disounted seurity for the purposes of this Part. (2) For the purposes of this Part, where a person exhanges a gilt-edged seurity for strips of that seurity, the person who reeives the strips in the exhange shall be deemed to have paid, in respet of the aquisition of eah strip, the amount whih bears the same proportion to the market value of the seurity as is borne by the market value of the strip to the aggregate of the market values of all the strips reeived in exhange for the seurity. (3) For the purposes of this Part, where strips are onsolidated into a single gilt edged seurity by being exhanged by any person for that seurity, eah of the strips shall be deemed to have been redeemed at the time of the exhange by the payment to that person of the amount equal to its market value. Page 32 AT 3 of 1970

33 Inome Tax At 1970 Setion 2 (4) The Treasury may by order provide that this Part is to have effet with suh modifiations as it may think fit in relation to any relevant disounted seurity whih is a strip. (5) An order made by the Treasury under this setion may make provision for the purposes of subsetions (2) and (3) as to the manner of determining the market value at any time of any seurity; ontain suh inidental, supplemental, onsequential and transitional provision as the Treasury may think fit. (6) Subjet to any order under subsetion (5), referenes in subsetions (2) and (3) to the market value of a seurity given or reeived in exhange for another are referenes to its market value at the time of the exhange. 54 2Y Realised losses on disounted seurities [P1996/8/ Sh13 para 2] (1) Subjet to the provisions of setions 2Q to 2X and 2Z, where a person sustains a loss in any year of assessment from the disount on a relevant disounted seurity, and makes a laim for the purposes of this paragraph before the end of 12 months from the 31st January next following that year of assessment, that person shall be entitled to relief from inome tax on inome hargeable for that year under setion 2Q for that year equal to the amount of the loss. (2) Unused relief under this setion annot be arried forward or bak. (3) For the purposes of this setion a person sustains a loss from the disount on a relevant disounted seurity where he transfers suh a seurity or beomes entitled, as the person holding the seurity, to any payment on its redemption; and the amount paid by that person in respet of his aquisition of the seurity exeeds the amount payable on the transfer or redemption. (4) For the purposes of this setion the loss shall be taken to be equal to the amount of the exess inreased by the amount of any relevant osts; and to be sustained for the purposes of this setion in the year of assessment in whih the transfer or redemption takes plae. (5) Setion 2Q(4) applies for the purposes of this setion as it applies for the purposes of that setion. 55 AT 3 of 1970 Page 33

34 Setion 5 Inome Tax At Z General interpretation [P1996/8/ Sh13 para 15] (1) In this Part deep gain shall be onstrued in aordane with setion 2R(3); exluded indexed seurity has the meaning given by setion 2W; market value (exept in setion 2X) means the prie that the relevant seurity might reasonably be expeted to feth on a sale in the open market; relevant disounted seurity has the meaning given by setions 2R and 2X(1); strip means anything whih is a strip of a gilt-edged seurity. (2) Where a person, having aquired and transferred any seurity, subsequently re-aquires it, referenes in this Part to that person s aquisition of the seurity shall have effet, in relation to the transfer by that person of that seurity, or the redemption of the seurity in a ase where that person beomes entitled to any amount on its redemption, as referenes to that person s most reent aquisition of the seurity before the transfer or redemption in question and 4 [Repealed] 57 5 Assessment of new resident non-orporate taxpayers Where a non-orporate taxpayer beomes resident in the Isle of Man during the year of assessment, the Assessor shall allow only a proportion of all the allowanes and dedutions orresponding to the proportion whih the period during whih the taxpayer was resident in the Isle of Man in the year of assessment bears to the year and 7 [Repealed] 59 7A Non-orporate taxpayers: essation Where a non-orporate taxpayer eases to be regarded as resident in the Isle of Man during the year of assessment, the Assessor shall allow only a proportion of all the allowanes and dedutions in respet of that taxpayer orresponding to the proportion whih the period during whih the taxpayer was resident in the Isle of Man in the year of assessment bears to the year. 60 7B Individuals: death In the ase of the death of an individual, the inome tax whih is, or would have beome, hargeable under the Inome Tax Ats in respet of any year shall be Page 34 AT 3 of 1970

35 Inome Tax At 1970 Setion 8 assessed and harged upon his exeutors or administrators, and shall be a debt due from and payable out of his estate Voluntary pensions liable to tax [1946/10] (1) Where a person has eased to hold any offie or employment, and any pension or annual payment is paid to him, or his widow, surviving ivil partner or hild, or to any relative or dependant of his, by the person under whom he held the offie or by whom he was employed, or by the suessors of that person, then, notwithstanding that the pension or annual payment is paid voluntarily, or is apable of being disontinued, it shall be deemed to be inome for the purposes of assessment of inome tax. 62 (2) The expression earned inome in setion 34 below shall be deemed to inlude only so muh of any annuity, pension or annual payment as would qualify as a retirement benefit; and in this setion retirement benefit in relation to an offie or employment means a sum arrived at as follows () there shall be asertained the average for one year of the holder s emoluments from the offie or employment for the last three years of his servie up to the date of essation of suh servie (or for the whole period of his servie if less than three years); one sixtieth of the amount asertained at paragraph above shall be multiplied by the whole number of omplete years of the servie of the holder in the offie or employment; the holder s emoluments at paragraph above shall be the amount of those emoluments whih have qualified as earned inome under setion 34 below. 63 (3) In omputing the inome of a person in respet of any business or ommerial undertaking any sum paid by way of suh pension or annual payment shall be allowed in like manner as the salaries and wages paid in onnetion with suh business or undertaking. 9 Temporary absentees to be harged as residents [1946/63] Any person ordinarily residing in the Isle of Man, and who shall have departed from the Isle of Man for the purpose only of oasional residene elsewhere, shall be deemed, notwithstanding suh temporary absene, a person hargeable with inome tax as a person residing in the Isle of Man. AT 3 of 1970 Page 35

36 Setion 10 Inome Tax At Temporary residents to be harged after six months of residene [1946/64] No person who shall be in the Isle of Man for some temporary purpose only, and not with any view or intent of establishing residene therein, and who shall not atually have resided in the Isle of Man at one time or several times for a period equal in the whole to six months in any one year, shall be hargeable with inome tax as a person residing in the Isle of Man; but every suh person after residene in the Isle of Man for six months as aforesaid shall be hargeable with inome tax for the year ommening on the sixth April as a person residing in the Isle of Man in aordane with the provisions of setion five of this At. 11 Assessment of profits of non-residents [1946/13] The following provision shall, notwithstanding anything ontained in this At, be appliable to the inome derived by any person resident out of the Isle of Man from any trade, profession, employment, or voation arried on by suh person in the Isle of Man: the profits from any suh trade, profession, employment, or voation for the purposes of Manx inome tax shall be the full profits therefrom, and no allowane or dedution shall be made from suh profits in respet of borrowed apital or of any sum reeivable by a proprietor or partner, or in the ase of an assoiation, of any sums distributed to any shareholder, stokholder, debenture-holder, mortgagee, or other person owning any interest in the apital of the business. 11A Limit on inome hargeable on non-residents (1) Notwithstanding any other setion of this At, the inome tax hargeable for any year of assessment on the total inome of any individual who is not resident in the Island for the whole of that year shall not exeed the sum of the following amounts the amount of inome tax whih, apart from this setion, would be hargeable on that total inome if the amount of that inome were redued by the amount of any exluded inome; and the amount of tax deduted from so muh of any exluded inome as is inome the tax on whih is deduted at soure, and for the purposes of alulating the limit of inome tax under this subsetion, personal allowane under setion 35C shall be left out of aount. (2) For the purposes of this setion inome arising for any year of assessment to an individual who is not resident in the Island for the whole of that year is exluded inome if it represents dividends paid by a ompany inorporated under the Companies Ats 1931 to 2004 or registered under Part XI of the Companies At 1931; Page 36 AT 3 of 1970

37 Inome Tax At 1970 Setion 11 () (d) (e) (f) (g) (h) deposit interest paid by the holder of a liene under setion 7 of the Finanial Servies At 2008 in respet of deposit taking; 64 interest or dividends paid by a building soiety authorised under setion 2 or 4A of the Building Soieties At 1986; interest or dividends paid by the Government in respet of bonds issued under the Isle of Man Loans At 1974; interest or dividends paid by a loal authority in respet of seurities issued under setion 50 of the Loal Government At 1985; inome from soial seurity benefits that are hargeable to inome tax under setion 48; national insurane retirement pensions paid by the Department of Health and Soial Seurity; or inome of suh other desription as the Treasury by order designates for the purposes of this subsetion, but where that individual is hargeable in the name of another ( the representative ) under setion 70(1) in respet of inome from a trade or profession arried on in the Island, through the representative or at or from a branh in the Island, suh inome shall not be exluded inome. (3) An order under subsetion (2)(h) may amend paragraphs to (g) of subsetion (2); and shall not ome into operation unless it is approved by Tynwald. (4) This setion shall not apply to the inome tax hargeable for any year of assessment on the inome of trustees not resident in the Island if there is a relevant benefiiary of the trust who is either an individual resident in the Island, or a ompany resident in the Island. (5) In subsetion (4), the referene to a relevant benefiiary, in relation to a trust, is a referene to any person who, as a person falling wholly or partly within any desription of atual or potential benefiiaries, is either a person who is, or will or may beome, entitled under the trust to reeive the whole or any part of any inome under the trust; or a person to or for the benefit of whom the whole or any part of any suh inome may be paid or applied in exerise of any disretion onferred by the trust; and for the purposes of this subsetion referenes, in relation to a trust, to inome under the trust shall inlude referenes to so muh (if any) of any property falling to be treated as apital under the trust as represents amounts originally reeived by the trustees as inome. (6) In subsetion (1) AT 3 of 1970 Page 37

38 Setion 12 Inome Tax At 1970 the referene to exluded inome the tax on whih is deduted at soure is a referene to exluded inome from whih an amount in respet of inome tax is or is treated as deduted, on whih any suh amount is treated as paid or in respet of whih there is a tax redit, and the referene, in relation to any suh inome, to the amount of inome tax deduted shall aordingly be onstrued as a referene to the amount whih is or is treated as deduted or whih is treated as paid or, as the ase may be, to the amount of the redit. (7) For the avoidane of doubt, in subsetion (1) referene to tax deduted shall not inlude any retention tax deduted under the Inome Tax (Retention of Tax and Exhange of Information) (Temporary Taxation) Order 2005 [SD150/05] pursuant to a retention agreement entered into between the Island and a member State within the meaning of the European Communities (Isle of Man) At to 13 M [Repealed] Valuation of trading stok on essation of trade [1949/22] (1) In omputing for any purpose of the Inome Tax Ats the profits or gains of a trade whih has been disontinued, any trading stok belonging to the trade at the disontinuane thereof shall be valued as follows: in the ase of any suh trading stok (i) (ii) whih is sold or transferred for valuable onsideration to a person who arries on or intends to arry on a trade in the Isle of Man; and the ost whereof may be deduted by the purhaser as an expense in omputing for any suh purpose the profits or gains of that trade; the value thereof shall be taken to be the amount realised on the sale or the value of the onsideration given for the transfer; in the ase of any other suh trading stok, the value thereof shall be taken to be the amount whih it would have realised if it had been sold in the open market at the disontinuane of the trade. (2) Where by virtue of any provision of setion four of this At, a trade is treated as having been disontinued for the purpose of omputing tax, it shall also be so treated for the purpose of this setion, but this setion shall not apply in a ase where a trade arried on by an individual is disontinued by reason of his death. Page 38 AT 3 of 1970

39 Inome Tax At 1970 Setion 15 (3) For the purpose of this setion, the expression trading stok in relation to any trade, means property of any desription, whether real or personal, being either property suh as is sold in the ordinary ourse of the trade or would be so sold if it were mature or if its manufature, preparation, or onstrution were omplete; or materials suh as are used in the manufature, preparation, or onstrution of any suh property as is referred to in the last foregoing paragraph. 14A to 14D [Repealed] 67 Exemptions, Allowanes and Relief 15 Inomes exempt from inome tax [1946/14] The following inomes shall be exempt from inome tax, that is to say () the inome derived from any property of any orporation or soiety or persons, or of any trust established for haritable purposes only, or whih, aording to the rules or regulations established by At of the Imperial Parliament, At of Tynwald, harter, deree, deed of trust, or will, shall be appliable by the said orporation or soiety or by any trustee to haritable purposes only; the inome of any property in the names of any trustees appliable solely to the repairs of any ollege, hurh, hapel or any building used solely for the purpose of publi worship, and in so far as the same shall be applied to suh purposes, provided the appliation thereof to suh purposes shall be duly proved before the Assessor; the inome derived from any property of Her Majesty in whatever name or names the same may vest or stand. 16 Disablement pensions exempt from tax [1946/16; 1962/2] (1) Inome from wounds and disability pensions to whih this setion applies shall be exempt from inome tax and shall not be rekoned in omputing inome for any of the purposes of the Inome Tax Ats. (2) This setion applies to wounds pensions granted to members of naval, military or airfores of the Crown; AT 3 of 1970 Page 39

40 Setion 16 Inome Tax At 1970 () (d) (e) (f) retired pay of disabled offiers granted on aount of medial unfitness attributable to or aggravated by naval, military, or airfore servie; disablement or disability pensions granted to members, other than ommissioned offiers, of the naval, military, or air-fores of the Crown, on aount of medial unfitness attributable to or aggravated by naval, military, or air-fore servie; disablement pensions granted to persons who have been employed in the nursing servies of any of the naval, military, or air-fores of the Crown, on aount of medial unfitness attributable to or aggravated by naval, military, or air-fore servie; injury and disablement pensions payable under any sheme made under the Injuries in War (Compensation) At, 1914, the Injuries in War (Compensation) At, 1914 (Session 2), and the Injuries in War (Compensation) At, 1915 (Ats of the Imperial Parliament), or under any war risks ompensation sheme for the Merantile Marine in operation in the United Kingdom; allowanes granted to widows and surviving ivil partners of members of the naval, military, or air-fores of the Crown: 68 Provided that, where the amount of any retired pay or pensions to whih this setion applies is not solely attributable to disablement or disability, the relief onferred by this setion only extend to suh part as is ertified by the Seretary of State for Soial Servies, a Minister of the Crown, after onsultation with the Department of Health and Soial Seurity, to be attributable to disablement or disability A [Repealed] 70 16B 16C Jurors remuneration: exemption The remuneration payable to a juror under setion 32 of the Jury At 1980 shall not be brought into aount by the Assessor as part of the inome of the reipient. 71 Maintenane payments: exemption (1) Inome reeived by an individual in the form of a maintenane payment shall be exempt from inome tax and shall not be rekoned in omputing inome for any of the purposes of the Inome Tax Ats. (2) In this setion hild of the family means, in relation to two persons who are married to or ivil partners of eah other, a person under 21 years of age who is a hild of both those persons; or Page 40 AT 3 of 1970

41 Inome Tax At 1970 Setion 17 who, not being a person who has been plaed with both of them as foster parents by the Department of Soial Care or a voluntary organisation, has been treated by both of them as a hild of their family; maintenane payment means a periodial payment, other than an instalment of a lump sum, whih is made under an order of a ourt of ompetent jurisdition or under a written agreement the proper law of whih is the law of the Island, whih is made by one of the parties to a marriage or ivil partnership (inluding one whih has been dissolved or annulled) either (i) (ii) to or for the benefit of the other party and for the maintenane of the other party; or to or for the benefit of a hild of the family for the benefit, maintenane or eduation of that hild, and whih is made at a time when the two parties are not living together within the meaning of setion 65E of the Inome Tax At 1970; or in the ase of parents who are not, and have not been, married to or ivil partners of eah other, is made by one parent to or for the benefit of the hild of the family for the benefit, maintenane or eduation of that hild and is made at a time when the parents are separated and the irumstanes are suh that the separation is likely to be permanent; parent means any person in relation to whom the minor onerned is a hild of the family Agriultural soieties exempt from tax [1946/15] (1) Any profits or gains arising to an agriultural soiety from an exhibition or show held for the purposes of the soiety shall, if they are applied solely to the purposes of the soiety, be exempt from inome tax. (2) The expression agriultural soiety in this setion means any soiety or institution established for the purposes of promoting the interests of agriulture, hortiulture, livestok breeding, or forestry. 18 Exemptions for friendly soieties (1) The speial inome of any friendly soiety to whih this setion applies shall be exempt from inome tax. (2) In subsetion (1) above, speial inome means inome (other than inome arising from pension business) arising from AT 3 of 1970 Page 41

42 Setion 19 Inome Tax At 1970 life or endowment business onsisting of the assurane of gross sums not exeeding 500 or of the granting of annuities of annual amounts not exeeding 104; the granting of annuities under ontrats approved by the Assessor under setion 49 of this At, being annuities payable wholly in return for premiums or other onsideration paid by a person who (when the premiums or other onsideration are or is payable) is, or would but for an insuffiieny of profits or gains be, hargeable to tax in respet of relevant earnings (as defined in the said setion 49) from a trade, profession, voation, offie or employment arried on or held by him. 73 (3) In applying the limits of 500 and 104 any bonus or addition whih either is delared upon an assurane of a gross sum or annuity; or arues upon suh an assurane by referene to an inrease in the value of any investments, shall be disregarded. (4) The Treasury may by order amend the limits speified in subsetions (2) and (3) above, but suh an order shall not ome into operation until it has been approved by Tynwald. (5) This setion shall apply to the following soieties any friendly soiety whih is legally established under any At of Tynwald or At of Parliament relating to friendly soieties; any benevolent or friendly soiety, established prior to the 12th April 1921, whih satisfies the Assessor that its objets are similar to those of the friendly soieties desribed in paragraph above A Boards and loal authorities to be exempt from tax The inome of any publi Board or authority onstituted under any enatment or under any order approved by Tynwald under any enatment, and of any loal authority, shall be exempt from inome tax Industrial soieties exempt from tax [1946/19] A soiety registered under the Industrial and Building Soieties Ats, 1892 to 1963, shall be exempt from the payment of inome tax on so muh of its profits as are distributed in any manner among the members of suh soiety or nonmembers reeiving dividends on purhases. Page 42 AT 3 of 1970

43 Inome Tax At 1970 Setion Members of friendly and industrial soieties [1946/21] No shareholder or stokholder of any assoiation, or member of any friendly soiety, or soiety registered under the Industrial and Building Soieties Ats, 1892 to 1963, or other benevolent or friendly soiety, shall, by reason of this At, be exempt from payment of inome tax, or assessment for suh tax, in respet of any dividend (other than dividends on purhases to members or non-members of suh soieties), interest, bonus, share of profits, or benefit reeived by him from suh assoiation or soiety. 20A to 20F [Repealed] [Repealed] 77 21A Interest on ertain Government seurities exempt from tax (1) Where the total inome of an individual who resides in the Island inludes, or would but for this setion inlude, for the year of assessment, any amounts paid or redited in respet of interest on speified Government seurities, those sums shall be disregarded for all the purposes of the Inome Tax Ats, other than for the furnishing of information, if or in so far as they do not exeed suh sum (if any) as Tynwald may by resolution provide; and, for this purpose, the question whether or how far those sums exeed any suh sum shall, where a valid eletion is in fore under setion 65A of this At for the aggregation of the inome of spouses or ivil partners, be determined separately by referene to the inome of the spouses or ivil partners before aggregation. 78 (2) Where the total Manx inome of a person who is not resident in the Isle of Man inludes, for the year of assessment, or would but for this subsetion inlude, any sums paid or redited in respet of interest on speified Government seurities, those sums shall, so long as it is shown to the Assessor that the seurities are in the benefiial ownership of suh person, and subjet to subsetion (3) below, be exempt from inome tax. (3) Where the inome of any person is by virtue of any provision of the Inome Tax Ats to be deemed to be inome of any other person that inome shall not be exempt from tax as being sums paid or redited in respet of interest on speified Government seurities by reason of the first mentioned person not being resident in the Isle of Man. (4) In this setion the expression speified Government seurities means instruments of seurity issued by the Government under the provisions of the Isle of Man Loans At 1958 or any At amending or replaing suh At or extending the power of the Government to issue suh instruments of seurity and whih the Treasury speifies (whether before or after the AT 3 of 1970 Page 43

44 Setion 22 Inome Tax At 1970 oming into fore of this At) as being Government seurities to whih subsetion (1) or subsetion (2) or both suh subsetions, as the ase may require, of this setion apply Easter offerings exempt from tax [1958/6] Voluntary gifts (inluding Easter offerings) reeived by a minister of religion from his ongregation, even though they arue to him by reason of his holding that offie, shall up to an amount not exeeding in the aggregate the sum of two hundred pounds in any one year of assessment, be exempt from inome tax, and shall not be rekoned in omputing inome for any of the purposes of the Inome Tax Ats. 23 Certain subsistene allowanes exempt from tax [1963/6] Any allowane, whih purports to be a subsistene allowane and whih is payable to any person by virtue of a resolution of Tynwald, shall not, unless Tynwald shall otherwise delare, be brought into aount by the Assessor as part of the inome of the reipient. 24 Governor s salary, et, exempt from tax [1953/7] The salary, emoluments and offiial allowanes payable or made in respet of the present and any future holder of the offie of Lieutenant Governor of the Isle of Man shall be exempt from the provisions of this At. 25 Corporate taxpayers no dedution for distributed inome A orporate taxpayer s profits shall be omputed for the purposes of inome tax without any dedution in respet of any distribution of its inome among its shareholders or stokholders, members or assoiates, by way of dividend, bonus, interest, or share in profit A Distributed inome: tax redit vouher (1) Subjet to subsetions (3) and (5), as soon as pratiable after a distribution is paid by a orporate taxpayer it shall send a tax redit vouher to every member who was inluded in the distribution. (2) A tax redit vouher shall ontain suh information and be in suh form as may be presribed. (3) No tax redit shall be allowed in respet of a distribution from reserves aumulated before 6 April 2006 and in suh a ase no tax redit vouher shall be issued. (4) [Repealed] 82 Page 44 AT 3 of 1970

45 Inome Tax At 1970 Setion 25 (5) This setion shall not apply when the rate of the inome tax harged on the profits of the orporate taxpayer at the time the profits out of whih the distribution was derived were reeived or arued is zero. (6) The Treasury may make regulations to give full effet to this setion. (7) Regulations under this setion shall not ome into operation unless they are approved by Tynwald B Value of a tax redit vouher (1) The value of a tax redit vouher shall be determined in aordane with the formula G x R where: G = the gross amount of inome distributed to the member determined in aordane with subsetion (2); and R = the rate of the inome tax harged on the profits of the orporate taxpayer at the time the profits out of whih the distribution was derived were reeived or arued. (2) In determining the gross amount of inome distributed to the member no aount shall be taken of any payment of inome tax or distribution redit, nor of any redit due to the member as distribution redit under setion 13H or tax redit, and the amount shall be determined in aordane with the following The amount of inome distributed X R where R has the same meaning as in subsetion (1). (3) Subjet to setion 25A(3), the profits of a orporate taxpayer out of whih a distribution is derived shall be treated on a first in first out basis C Vouher a redit against inome tax (1) The value of a tax redit vouher shall be deduted from the amount of tax due and payable by the reipient of the redit vouher in respet of the year of assessment in whih the distribution is paid. (2) In respet of a tax redit vouher that is reeived by a non-orporate taxpayer, any unused balane of the value of the tax redit vouher shall be refundable exept where the distribution in respet of whih the vouher applies is exluded inome under setion 11A(2). (3) In respet of a tax redit vouher that is reeived by a orporate taxpayer, any unused balane of the value of the tax redit vouher shall not be refundable nor shall it be arried forward. 85 AT 3 of 1970 Page 45

46 Setion 26 Inome Tax At [Repealed] Dedution for remuneration of trustees [1949/20] Where a settlor or testator under any instrument reating a trust has direted remuneration to a trustee out of the inome of the trust, or where the trustee or the benefiiary of the trust proves to the satisfation of the Assessor that the trustee at the time of aepting the trust ontrated for remuneration for his servies as trustee out of the inome of the trust, the benefiiary shall be entitled to a dedution of suh remuneration from suh inome up to an amount not exeeding five per entum of the annual inome of the trust. 27A Provision of reliefs and allowanes for trading losses and apital expenditure (1) For the purposes of the assessment of inome tax in respet of the profits and gains of any trade, profession or voation, the Treasury may by order make suh provision as it thinks fit for the dedution of reliefs, and the making of allowanes, in respet of trading losses or apital expenditure. (2) Without prejudie to the generality of subsetion (1) above, or to setion 26 of the Interpretation At 1976 (onstrution of provisions as to exerise of powers and duties), an order under this setion may () permit reliefs and allowanes to be arried forward from one period to subsequent periods; 87 permit reliefs and allowanes to be arried bak from one period to previous periods; 88 make speial provision with respet to the allowanes to be made in relation to any business providing for the lodging of tourists or visitors. (3) Subjet to subsetion (4) below, any provision of an order made under this setion may be made retrospetive and be deemed to have ome into operation from suh day or days as may be speified in the order, not being earlier than the beginning of the period in whih the order is made. 89 (4) An order made under this setion shall not ome into operation until it is approved by Tynwald. (5) In this setion, period means in the ase of the taxation of non-orporate taxpayers, a year of assessment; and in the ase of the taxation of orporate taxpayers, an aounting period Page 46 AT 3 of 1970

47 Inome Tax At 1970 Setion [Repealed] Reliefs for ertain apital expenditure [1955/5] (1) In the omputation of the profits and gains of a trade or profession for the purpose of the Inome Tax Ats, the Assessor (and on appeal the Commissioners) shall make the same initial, annual, exeptional depreiation, and balaning allowanes, and impose the same balaning harges in respet of industrial buildings and strutures, mahinery, plants, mines, oil wells, agriultural land and buildings, patents, and expenditure on sientifi researh as would be made if suh profits or gains fell to be asertained under and for the purposes of the Inome Tax Ats of the Imperial Parliament in fore on 5 April (2) Notwithstanding subsetion (1), the Treasury may by order, made with the approval of Tynwald, modify the amount of the allowanes made or harges imposed under subsetion (1); and the onditions subjet to whih allowanes may be made or harges may be imposed under subsetion (1). 94 (3) An order under subsetion (2), may make different provisions for different areas of the Isle of Man; modify the operation of Shedule 2 to the Inome Tax At 1980 in relation to suh allowanes or harges as are modified by suh an order Crime-related payments (1) No dedution shall be allowed for any purpose under the Inome Tax Ats in respet of expenses inurred in making a payment if the making of the payment onstitutes a riminal offene, or in making a payment outside the Island if the making of a orresponding payment in the Island would onstitute a riminal offene in this Island. (2) No dedution shall be allowed for any purpose under the Inome Tax Ats in respet of expenses inurred in making a payment indued by a demand whih onstitutes the offene of blakmail under setion 23 of the Theft At AT 3 of 1970 Page 47

48 Setion 31 Inome Tax At No dedution allowed for apital employed [1966/2] Save as hereinafter provided in this setion no dedution shall be allowed for any sum employed or intended to be employed as apital, nor for any disbursements or expenses whatsoever not being money wholly and exlusively laid out or expended in aquiring the inome upon whih inome tax is payable. 31A Dedutions in presribed ases (1) Notwithstanding setion 31, the Treasury may, in respet of any year of assessment or, in the ase of a orporate taxpayer, any aounting period, by order () provide, in respet of suh payments as may be presribed, that persons shall be entitled (i) (ii) for the purpose of asertaining taxable inome, to have suh dedutions as are speified in the order to be made from their total inome; or for the purpose of asertaining liability to inome tax, to have suh dedutions as are speified in the order to be made from the liability to inome tax that would have arisen but for the speified dedution; 97 make provision as to the method of alulation of suh dedutions and as to whether suh dedutions shall be made in the year or period in whih the payment is made or in any other year or period; and 98 presribe onditions and restritions whih are appliable to suh dedutions. 99 (2) An order under this setion may be made retrospetive and shall be deemed to have had effet in respet of suh year of assessment or, in the ase of a orporate taxpayer, suh aounting period as may be speified in the order; 100 shall not ome into operation until it has been approved by Tynwald B Expenses defrayed from remuneration [P1988/1/199] (1) Subsetion (2) applies where the Treasury is satisfied, with respet to any lass of individuals who are in reeipt of any remuneration, that suh individuals are obliged to lay out and expend money wholly, exlusively and neessarily in the performane of the duties in respet of whih suh remuneration is payable. Page 48 AT 3 of 1970

49 Inome Tax At 1970 Setion 32 (2) Subjet to subsetion (3), the Treasury may by order fix suh sum as in its opinion represents a fair equivalent of the average annual amount laid out and so expended by individuals of that lass, and in harging inome tax on suh remuneration there shall be deduted from it the sums so fixed by the Treasury. (3) If any suh individual would, by or under setion 31 or 31A of this At, be entitled to dedut a larger amount than the sum so fixed, this setion shall not apply. (4) In this setion, remuneration means inome arising in respet of any remuneration from any offie or employment held by the individual. (5) Orders under subsetion (1) shall be laid before Tynwald C Compensation shemes (1) Notwithstanding the provisions of this At, the inome of a ompensation sheme shall not be liable to inome tax. (2) In alulating the taxable inome of a person for a year of assessment any sum expended in that year by that person in paying a ontribution whih he is required to pay to a ompensation fund may be deduted as an allowable expense; any payment whih is made to a person and is a repayment of ontribution or is in respet of a repayment of ontribution by or on behalf of a sheme manager shall be treated as inome. (3) Exept as provided by subsetion (2), any sum expended by a person in paying a ontribution whih he is required to pay to a ompensation fund shall not be treated as an allowable expense for the purposes of the Inome Tax Ats. (4) In this setion ompensation sheme means a sheme established under setion 25 of the Finanial Servies At 2008 or setion 43 of the Insurane At 2008; 103 fund means a fund established under setion 25 of the Finanial Servies At 2008 or setion 43 of the Insurane At 2008 out of whih ompensation is to be paid under a ompensation sheme; 104 sheme manager means the body administering a ompensation sheme D [Repealed] No dedution allowed for gratuitous allowanes [1946/5(3)] No dedution shall be allowed to any person for any gratuitous allowane made by him, and where any person has made a gratuitous allowane to any other AT 3 of 1970 Page 49

50 Setion 33 Inome Tax At 1970 person out of his inome, the amount of suh allowane shall not be assessed as inome of the person reeiving the allowane. The expression allowane inludes any gift of money. 32A Redution of Class 4 ontributions (1) Notwithstanding setion 9 of, and Shedule 2 to, the Soial Seurity At 1975 (an At of Parliament) as that At has effet in the Isle of Man, the Assessor shall, in the olletion of Class 4 ontributions under those provisions, allow a dedution of 0%. 107 (2) A person who, in aordane with the provisions referred to in subsetion (1) above, pays a Class 4 ontribution less suh dedution as is permitted by that subsetion, shall be treated for all purposes of or under the said At as having made payment of the full amount alulated in aordane with the said setion 9. (3) The Treasury shall from time to time pay into the Manx National Insurane Fund amounts equivalent to the dedutions made under subsetion (1). (4) Payments under subsetion (3) shall be made in aordane with arrangements agreed between the Treasury and the Department of Health and Soial Seurity but suh payments shall in every ase be made within 6 months after the end of the year of assessment in whih the relevant Class 4 ontribution is made. (5) Payments into the Manx National Insurane Fund under subsetion (4) shall be made out of, and shall be a harge on, the General Revenue of the Isle of Man. (6) The Treasury may by order vary the perentage mentioned in subsetion (1). (7) An order under subsetion (6) shall not ome into operation unless it is approved by Tynwald Dedutions to be allowed in asertaining taxable inome and liability to inome tax An individual who, in the manner presribed in this At, makes a laim in that behalf, and who makes a return in the presribed form of his or her total inome from all soures, shall be entitled for the purpose of asertaining taxable inome, to have suh dedutions as are permitted to be made from total inome by the Inome Tax Ats; and for the purpose of asertaining liability to inome tax, to have suh dedutions as are permitted by Inome Tax Ats to be made from liability to inome tax that would have arisen but for the permitted dedution. 109 Page 50 AT 3 of 1970

51 Inome Tax At 1970 Setion and 34A [Repealed] Personal allowane (1) Subjet to the provisions of this setion, where a valid eletion is in fore under setion 65A of this At for the aggregation of the inome, dedutions and reliefs of two persons who are spouses or ivil partners of eah other, they shall be entitled, for the purpose of asertaining taxable inome in any year of assessment, to a dedution of 18,600 from their total inome. 111 (2) Subsetion (1) shall not apply to any ase where the spouse or ivil partner of the laimant is in reeipt of remuneration whih is subjet to dedution of inome tax under setion 3 of the Inome Tax (Instalment Payments) At 1974; or 112 [Repealed] 113 (2A) Subsetions (1) and (4) to (6) do not apply in respet of a year of assessment in whih two persons marry or form a ivil partnership and (in either ase) begin to live together; or 114 spouses or ivil partners ease to be treated as living together (3) In all ases to whih subsetion (1) does not apply, an individual shall be entitled, for the purpose of asertaining taxable inome (ba) () in the ase of a single person, to a dedution of 9,300 from total inome; 117 in the ase of a married person who for that year of assessment is not living with his or her spouse, to a dedution of 9,300 from total inome; 118 in the ase of a ivil partner who for that year of assessment is not living with his or her ivil partner, to a dedution of 9,300 from total inome; 119 in the ase of a spouse or ivil partner who for that year of assessment is living with his or her spouse or ivil partner, a dedution of 9,300 from total inome. 120 (d) [Repealed] 121 (4) Subjet to subsetions (5) and (6), if the allowane of a spouse or ivil partner under subsetion (3)() is not exhausted, the unused balane of that allowane may be transferred to that person s spouse and shall be added to and form part of the allowane of the spouse. 122 (4A) Subjet to subsetions (5) and (6), if the allowane of the ivil partner under subsetion (3)() is not exhausted, the unused balane if that AT 3 of 1970 Page 51

52 Setion 35 Inome Tax At 1970 allowane may be transferred to that person s ivil partner and shall be added to and form part of the allowane of the ivil partner. 123 (5) Subsetions (4) and (4A) shall apply if, and only if, a valid eletion is in fore under setion 65A of this At for the aggregation of the inome, dedutions and reliefs of a spouse or ivil partner. 124 (6) Any transfer under subsetion (4) shall be made by the Assessor. (6A) If the allowane of an individual ( the taxpayer ) under subsetion (3) is not exhausted and an additional dedution equal to the unused balane of that allowane is allowed to a laimant under setion 39B of this At, the maximum relief to whih the taxpayer shall be entitled under this setion is aordingly redued by an amount equal to the additional dedution. 125 (7) In this setion, the words living together and living with shall be onstrued in aordane with setion 65E(2) of this At. 126 (8) Subsetions (2) and (5) shall not ome into operation until the day on whih setion 70 of the Inome Tax At 1989 omes into operation A Allowane for blind persons (1) If the laimant proves that for the whole or part of the year of assessment he was a registered blind person, he shall be entitled to a dedution of 2,900 from his total inome. 128 (2) [Repealed] 129 (3) In this setion registered blind person means a person registered as a blind person in a register ompiled under setion 27 of the National Assistane (Isle of Man) At B Allowane for disabled persons (1) If the laimant proves that for the whole or any part of the year of assessment he was in reeipt of either attendane allowane under setions 64 to 66 of the Soial Seurity Contributions and Benefits At 1992 (an At of Parliament) as that At has effet in the Island; or disability living allowane under setions 71 to 73 of that At, the laimant shall be entitled to a dedution of 2,900 from his total inome. 131 (2) [Repealed] 132 (3) A person annot laim a dedution under subsetion (1) in addition to a laim for a dedution under setion 35A(1); Page 52 AT 3 of 1970

53 Inome Tax At 1970 Setion 39 [Repealed] 133 (4) Setion 65E(1) applies for the purpose of this setion as it applies for the purposes of that setion C Personal allowane for non-residents (1) An individual who is not resident in the Island shall be entitled, for the purpose of asertaining taxable inome in any year of assessment, to a dedution of 0 from total inome from all soures within the Island ( Manx total inome ). 136 (2) The allowane under this setion in respet of a laimant who is married or is a ivil partner shall be the same as it is for a single laimant D Cessation of non-residene Where an individual eases to be regarded as non-resident and ommenes residene in the Island during the year of assessment, the Assessor shall allow only a proportion of the dedution under setion 35C in respet of that individual orresponding to the proportion whih the period during whih the individual was non-resident in the year of assessment bears to the year E Cessation of residene Where an individual eases to be regarded as resident in the Island during the year of assessment, the Assessor shall allow only a proportion of the dedution under setion 35C in respet of that individual orresponding to the proportion whih the period during whih the individual was non-resident in the year of assessment bears to the year to 38 [Repealed] [Repealed] A Additional relief in respet of hildren: single persons (1) This setion applies to any person who is not for the whole of the year of assessment (i) married and living with his or her spouse; or (ii) a ivil partner and living with his or her ivil partner; 143 is not at any time in the year living with another as if they were spouses or ivil partners. 144 (2) Subjet to subsetion (3), if the laimant is a person to whom this setion applies, and AT 3 of 1970 Page 53

54 Setion 39 Inome Tax At 1970 a qualifying hild is resident with the laimant for the whole or a part of a year of assessment, the laimant shall be entitled for that year to a dedution of 6, (3) A laimant is entitled to only one inome dedution under subsetion (2) for any year of assessment irrespetive of the number of qualifying hildren resident with the laimant in that year. (4) This setion is subjet to setion 39D AA Relief in respet of nursing expenses (1) Subjet to the following provisions of this setion, if a laimant proves either that he employs, wholly or partly at his own expense, a registered nurse to attend upon him or a relative residing with him, or that he pays, wholly or partly at his own expense, any fee harged by a home to whih the Nursing and Residential Homes At 1988 applies in respet of (i) (ii) the board, personal are and treatment of the laimant; or the board, personal are and treatment of a relative who resides there, the laimant shall be allowed a dedution from his or her liability to inome tax of an amount equal to the ost to the laimant of suh employment or fee multiplied by the lower rate but suh dedution shall not in any ase exeed 9,300 multiplied by the lower rate or suh other sum as the Treasury may by order presribe. 147 (2) No dedution shall be allowed under subsetion (1) unless the laimant proves that he, or, as the ase requires, the relative, is so severely disabled physially or mentally that (2A) by day, he requires from another person either (i) (ii) frequent attention throughout the day in onnetion with his bodily funtions, or ontinued supervision throughout the day in order to avoid substantial danger to himself or others; or at night, he requires from another person either (i) (ii) prolonged and repeated attention during the night in onnetion with his bodily funtions; or ontinual supervision throughout the night in order to avoid substantial danger to himself or others. No dedution under subsetion (1) shall of itself entitle the laimant to a refund or repayment of tax. 148 Page 54 AT 3 of 1970

55 Inome Tax At 1970 Setion 39 (3) In subsetion (1), registered nurse has the same meaning as in the Nurses and Midwives At (3A) In subsetion (1), lower rate has the same meaning as in setion (4) An order under subsetion (1) shall not ome into operation unless it is approved by Tynwald. (5) This setion, with the exeption of subsetion (1), shall be deemed to have effet in respet of the tax year ommening on 6 April 1988 and subsequent years, and that subsetion shall be deemed to have effet in respet of the tax year ommening on 6 April 1994 and subsequent years B Additional relief in respet of hildren: persons living together for the whole year (1) This setion applies to any person who for the whole of the year of assessment is not (i) married and living with his or her spouse; or (ii) a ivil partner and living with his or her ivil partner; but 151 is living with another as if they were spouses or ivil partners. 152 (2) Subjet to subsetion (4), if () the laimant is a person to whom this setion applies, and a qualifying hild is resident with the laimant for the whole or a part of a year of assessment, and the other person referred to in subsetion (1), has agreed in writing (whih agreement shall be irrevoable), 153 the laimant shall be entitled for that year to an additional dedution under this setion. (3) The additional dedution under this setion is the amount equal to the unused balane (if any) of the other partner s personal relief under setion 35 but shall not in any ase exeed 6, (4) A person is entitled to only one inome tax dedution under this setion for any year of assessment irrespetive of the number of qualifying hildren resident with the ouple in that year. (5) This setion is subjet to setion 39D C Additional relief in respet of hildren: persons living together for part of the year (1) This setion applies to any person who is for any part of the year of assessment AT 3 of 1970 Page 55

56 Setion 39 Inome Tax At 1970 (i) (ii) married and living with his or her spouse; or a ivil partner and living with his or her ivil partner; and 156 who is not at any time in the year of assessment living with another as if they were spouses or ivil partners. 157 (2) Subjet to subsetion (4), if the laimant is a person to whom this setion applies, and a qualifying hild is resident with the laimant for the whole or a part of a year of assessment, the laimant shall be entitled for that year to an additional dedution under this setion. (3) The additional dedution under this setion is determined by the following formula 6,400 x N 365 Where N is the number of days in the year during whih the person is not married and living with his or her spouse; and not a ivil partner and living with his or her ivil partner. 158 (4) A person is entitled to only one inome tax dedution under subsetion (3) for any year of assessment irrespetive of the number of qualifying hildren resident with the ouple in that year. (5) This setion is subjet to setion 39D D Setions 39A to 39C: supplementary (1) This setion shall apply for the purposes of setions 39A to 39C (in this setion referred to as the setions ) and the setions shall have effet subjet to this setion. (2) Relief under the setions is allowed only in respet of the number of days during whih the hild is both a qualifying hild and resident with the laimant, and where those riteria are fulfilled for part only of the year, the relief shall be redued aordingly. (3) For the purposes of subsetion (2) and the setions a qualifying hild means, in relation to any laimant and any year of assessment, a hild of the laimant who is under the age of 16 years; or is of or over that age but is under the age of 19 years and is reeiving full-time instrution at any university, ollege, shool or other eduational establishment. (4) In subsetion (3), the referene to a hild reeiving full-time instrution at an eduational establishment inludes a referene to a hild undergoing Page 56 AT 3 of 1970

57 Inome Tax At 1970 Setion 39 training by any person ( the employer ) for any trade, profession or voation in suh irumstanes that the hild is required to devote the whole of his time to the training for a period of not less than 2 years. (5) If any question arises under this setion whether a hild is reeiving full-time instrution at an eduational establishment, the Assessor may onsult the Department of Eduation and Children; or 160 whether a hild is undergoing training as required by subsetion (4), the Assessor may require the laimant to furnish suh partiulars with respet to the training of the hild as the Assessor may require. (6) In subsetion (4) and the setions the referene to a hild of the laimant means () a hild who is a marital hild of the laimant; a stephild of the laimant; and a hild who is wholly maintained by the laimant at the laimant s own expense. (7) An individual shall not be regarded as entitled to relief under the setions for any year of assessment in onnetion with the same hild as another individual if there is another hild in onnetion with whom he, and he alone, is entitled to relief under that setion for that year to 43 [Repealed] A 43B Age-Relief: inome support A laimant who satisfies the Assessor that during the year of assessment he has attained the age of 60 years or upwards, shall be entitled to exemption from inome tax in respet of payments of inome support to him in that year under the Soial Seurity Contributions and Benefits At 1992, an At of Parliament, as that At has effet in the Island by virtue of an order under setion 1 of the Soial Seurity At Age allowane (1) Where an individual is 65 years or over for the whole of the year of assessment, that person is entitled to a dedution of 2,020, or suh other sum as is presribed by order of the Treasury, from his or her total inome. 164 (2) Where a valid eletion made in aordane with setion 65C (a joint treatment eletion ) is in fore, the dedution or, as the ase may be, both dedutions shall be aggregated under setion 65A(3). AT 3 of 1970 Page 57

58 Setion 44 Inome Tax At 1970 (3) An order under subsetion (1) must not ome into operation unless it is approved by Tynwald [Repealed] A Dedution for provision for surviving spouse, ivil partner and hildren 167 Any individual who is under the terms and onditions of his employment liable for the payment of any sum, or to the dedution from his salary or stipend of any sum, for the purpose of seuring a deferred annuity to his surviving spouse or ivil partner, or provision for his hildren after his death, shall be entitled to have the amount of his total inome redued by a dedution, representing the amount paid by him or deduted from his salary or stipend B Lump sum benefits on retirement [P1988/1/189] (1) A lump sum to a person (whether on his retirement from an offie or employment or otherwise) shall not be hargeable to inome tax if () it is paid in pursuane of any suh sheme as is desribed in setion 6(1) of the Inome Tax (Retirement Benefit Shemes) At 1978 and is neither a payment of ompensation to whih subsetion (2) applies nor a payment to whih subsetion (3) applies; or it is a benefit paid in pursuane of a retirement benefits sheme within the meaning of setion 13 of the said At of 1978 and the person to whom it was paid was hargeable to tax under setion 5 of that At in respet of sums paid, or treated as paid, with a view to the provision of the benefit; or it is paid under approved personal pension arrangements (within the meaning of Part 1 of the Inome Tax At 1989). (2) This subsetion applies to ompensation for loss of offie or employment or for loss or diminution of remuneration whih, in either ase is due to ill-health, but this subsetion shall not be taken to apply to any payment properly regarded as a benefit earned by past servie. (3) This subsetion applies to any payment to or for the benefit of an employee, otherwise than in ourse of payment of a pension, being a payment made out of funds whih are or have been held for the purposes of a sheme whih is or at any time has been approved for the purposes of setion 47 of this At or the Inome Tax (Retirement Benefit Shemes) At 1978 if the payment is not expressly authorised by the rules of the sheme; or is made at a time when the sheme is not approved for the purposes of those enatments, and would not have been expressly Page 58 AT 3 of 1970

59 Inome Tax At 1970 Setion 48 authorised by the rules of the sheme when it was last approved to 47 [Repealed] Soial seurity benefits liable for tax (1) Payments of benefit under Parts II to IV or Part IX of the Soial Seurity Contributions and Benefits At 1992 (an At of Parliament) and the Jobseekers At 1995 (an At of Parliament) as those Ats have effet in the Isle of Man, exept benefits under those Parts referred to in subsetion (2) below, shall be harged to inome tax as earned inome for the year of assessment in whih the benefit is paid. 171 (2) The following payments shall not be treated as inome for any purpose of the Inome Tax Ats short-term inapaity benefit, long-term inapaity benefit, attendane allowane, the mobility omponent of disability living allowane, maternity allowane, bereavement payments, hild s speial allowane and guardian s allowane; and 172 so muh of any benefit as is attributable to an inrease in respet of a hild. (3) The Treasury may by order add to the payments under subsetion (2) whih are not to be treated as inome for any purpose of the Inome Tax Ats. (4) An order under subsetion (3) shall not ome into operation until it is approved by Tynwald A Relief in respet of payments on retirement, et [P1970/10/187(1)-(3) and 188(3)] (1) Any termination payment shall be hargeable to inome tax, but tax shall not be harged in respet of a termination payment of an amount not exeeding 30,000 whih is made to the holder or past holder of any offie or employment, or to his exeutors or administrators, whether made by the person under whom he holds or held the offie or employment or by any other person. 174 (2) In the ase of a termination payment whih exeeds the amount mentioned in subsetion (1), inome tax shall be harged only in respet of the exess. (3) Where two or more termination payments are made to or in respet of the same person in respet of the same offie or employment, or in respet of different offies or employments held under the same employer or under assoiated employers, this setion shall apply as if AT 3 of 1970 Page 59

60 Setion 48 Inome Tax At 1970 those payments were a single payment of an amount equal to the aggregate amount. 175 (4) The Treasury may by order made with the approval of Tynwald, vary the amount mentioned in subsetion (1). (5) For the purposes of this setion, offies or employments in respet of whih termination payments are made shall be treated as held under assoiated employers if, on the date whih is the relevant date in relation to any of those payments, one of those employers is under the ontrol of the other or of a third person who ontrols or is under the ontrol of the other on that or any other suh date. (6) In this setion ontrol shall be onstrued in aordane with setion 119A of this At; 176 termination payment means a payment whih is made, whether in pursuane of any legal obligation or not, either diretly or indiretly in onsideration or in onsequene of, or otherwise in onnetion with, the termination of the holding of any offie or employment or any hange in its funtions or emoluments, inluding any payment in ommutation of annual or periodial payments (whether hargeable to tax or not) whih would otherwise have been made as aforesaid but does not inlude any payment whih is otherwise hargeable to inome tax; 177 the relevant date means in relation to a termination payment not being a payment in ommutation of annual or other periodial payments, the date of the termination or hange in respet of whih it is made and, in relation to a termination payment in ommutation of annual or other periodial payments, the date of the termination or hange in respet of whih those payments would have been made B Statutory redundany payments (1) Any redundany payment, and the orresponding amount of any other employer s payment, shall be hargeable to inome tax and shall be taken into aount as a termination payment under setion 48A of this At. (2) Where the Department pays a sum under setion 25 of the Redundany Payments At 1990 in respet of an employer s payment this setion shall apply as if that sum had been paid on aount of that redundany or other employer s payment; and so far as the employer has reimbursed the Department it had been paid by the employer. (3) Where a redundany payment or other employer s payment is made in respet of employment wholly in a trade, profession or voation arried on by the employer, and within the harge to tax, the amount of the Page 60 AT 3 of 1970

61 Inome Tax At 1970 Setion 48 redundany payment or the orresponding amount of the other employer s payment shall be allowable as a dedution (and not otherwise) in omputing for the purposes of the Inome Tax Ats the profits or gains or losses of the trade, profession or voation, but (4) In this setion () the amount of the rebate reoverable shall (if it is not otherwise to be so treated) be treated as a reeipt to be brought into aount in omputing those profits or gains; and if the employer s payment was made after disontinuane of the trade, profession or voation the net amount so dedutible shall be treated as if it were a payment made on the last day on whih the trade, profession or voation was arried on. redundany payment, employer s payment and rebate have the same meaning as in the Redundany Payments At 1990 ( the 1990 At ); referenes to the orresponding amount of an employer s payment (other than a redundany payment) are referenes to the amount of that employer s payment so far as not in exess of the amount of the relevant redundany payment (and so that, where in onsequene of setion 23(2) of the 1990 At there is no relevant redundany payment, the orresponding amount of an employer s payment is nil); the Department means the Department of Health and Soial Seurity. (5) For the purposes of subsetion (4) relevant redundany payment shall be onstrued in aordane with paragraph 7 of Shedule 2 to the said At of C Medial insurane: relief (1) This setion applies where () (d) on or after 6 April 1994 an individual makes a payment in respet of a premium under a ontrat of private medial insurane (whenever issued); the ontrat meets the requirement in subsetion (2) as to the person or persons insured; at the time the payment is made the ontrat is an eligible ontrat; the individual making the payment does not make it out of resoures provided by another person for the purpose of enabling it to be made; and AT 3 of 1970 Page 61

62 Setion 48 Inome Tax At 1970 (e) the individual making the payment is not entitled to laim any relief or dedution in respet of it under any other provision of the Inome Tax Ats. (2) The requirement mentioned in subsetion (1) is that the ontrat insures () an individual who at the time the payment is made is aged 60 or over and resident in the Isle of Man; individuals eah of whom at that time is aged 60 or over and resident in the Isle of Man; or two individuals who are married to, or are ivil partners of, eah other at that time, at least one of whom is aged 60 or over at that time, and eah of whom is resident in the Isle of Man at that time. 180 (3) Subjet to subsetions (4) and (5) and to regulations under subsetion (6), if the payment is made by an individual who at the time it is made is resident in the Isle of Man (whether or not he is the individual or one of the individuals insured by the ontrat) an amount equal to the payment multiplied by the lower rate shall be deduted from his or her liability to inome tax for the year of assessment in whih it is made. 181 (4) Relief under subsetion (3) shall not in any year exeed 1,800 multiplied by the lower rate or suh other sum as may be presribed. 182 (4A) No dedution under subsetion (3) shall of itself entitle the individual to a refund or repayment of tax. 183 (5) Relief under subsetion (3) shall be given only on a laim made for the purpose. (6) The Treasury may make regulations varying the ages speified in subsetion (2); () providing that in irumstanes presribed in the regulations an individual who has made a payment in respet of a premium under a ontrat of private medial insurane shall ease to be, and be treated as not having been, entitled to relief under subsetion (3); providing that a laim under subsetion (3) shall be made in suh form and manner, shall be made at suh time, and shall be aompanied by suh douments as may be presribed; (d) varying the sum speified in subsetion (4). (7) In this setion, referenes to a premium, in relation to a ontrat of insurane, are to any amount payable under the ontrat to the insurer. (8) In this setion, lower rate has the same meaning as in setion Page 62 AT 3 of 1970

63 Inome Tax At 1970 Setion 49 48D Eligible ontats (1) This setion has effet to determine whether a ontrat is at a partiular time ( the relevant time ) an eligible ontrat for the purposes of setion 48C. (2) A ontrat is an eligible ontrat at the relevant time if () it was entered into by an insurer who at the time it was entered into was a qualifying insurer; no benefit has been provided by virtue of the ontrat other than an approved benefit; the ontrat satisfies suh other requirements as are for the time being speified in regulations made by the Treasury. (3) For the purposes of this setion eah of the following is a qualifying insurer an insurer lawfully arrying on in the Isle of Man long term business within the meaning given under the Insurane At 2008; 186 an insurer not arrying on business in the Isle of Man but arrying on business in the United Kingdom or another ontrating State of the European Eonomi Area and being either a national of suh a State or a ompany or partnership formed under the law of the Isle of Man or the United Kingdom or another suh State and having its registered offie, entral administration or prinipal plae of business in suh State. (4) For the purposes of this setion a benefit is an approved benefit if the ontrat either provides indemnity in respet of all or any of the osts of all or any of the treatments, medial servies and other matters for the time being speified in regulations made by the Treasury, or in addition to providing indemnity of that desription provides ash benefits falling within rules for the time being so speified; the ontrat does not onfer any right other than suh a right as is mentioned in paragraph Retirement annuities (relief for premiums) [1959/1] (1) Where, in the year , or any subsequent year of assessment, an individual resident in the Isle of Man was, or is (or would have been or would, but for an insuffiieny of profits or gains be) hargeable to tax in respet of relevant earnings from any trade, profession, voation, offie or employment, arried on or held by him; and AT 3 of 1970 Page 63

64 Setion 49 Inome Tax At 1970 has paid, or pays, a premium or other onsideration under an annuity ontrat for the time being approved by the Assessor as having for its main objet the provision for the individual of a life annuity in old age or under a ontrat for the time being approved under setion 49A of this At (hereinafter referred to as a qualifying premium ); 188 then relief from tax may be given in respet of the qualifying premium under the next following setion, and any annuity payable to the same or another individual shall be treated as earned inome of the annuitant to the extent to whih it is payable in return for any amount on whih relief is so given. (2) Subjet to the next following subsetion, the Assessor shall not approve a ontrat unless it appears to him to satisfy the onditions that it is made by the individual with a person lawfully arrying on in the Isle of Man or the United Kingdom the business of granting annuities on human life, and that it does not () (d) (e) provide for the payment by that person during the life of the individual of any sum exept sums payable by way of annuity to the individual; or provide for the annuity payable to the individual to ommene before he attains the age of sixty or after he attains the age of seventy-five; or 189 provide for the payment by that person of any other sums exept sums payable by way of annuity to the individual s surviving spouse or surviving ivil partner and any sums whih in the event of no annuity beoming payable either to the individual or to a surviving spouse or surviving ivil partner, are payable by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits; or 190 provide for the annuity, if any, payable to a surviving spouse or surviving ivil partner of the individual to be of greater annual amount than that paid or payable to the individual; or 191 provide for the payment of any annuity otherwise than for the life of the annuitant, and that it does inlude provision seuring that no annuity payable under it shall be apable in whole or in part of surrender, ommutation or assignment. Provided that the ontrat may give the individual the right to reeive, by way of ommutation or part of the annuity payable to him, a lump sum not exeeding three times the annual amount of the remaining part of the annuity, taking, where the annual amount is or may be different in different years, the initial annual amount, and shall make any suh right Page 64 AT 3 of 1970

65 Inome Tax At 1970 Setion 49 depend on the exerise by the individual of an eletion at or before the time when the annuity first beomes payable to him. 192 (3) The Assessor may, if he thinks fit, and subjet to any ondition he thinks proper to impose, approve a ontrat otherwise satisfying the foregoing onditions notwithstanding that the ontrat provides for one or more of the following matters, that is to say () (d) (e) for the payment after the individual s death of an annuity to a dependant not the surviving spouse or surviving ivil partner of the individual; 193 for the payment to the individual of an annuity ommening before he attains the age of sixty, if the annuity is payable on his beoming inapable through infirmity of mind or body of arrying on his own oupation or any oupation of a similar nature for whih he is trained or fitted; if the individual s oupation is one in whih persons ustomarily retire before attaining the age of sixty, for the annuity to ommene before he attains that age; 194 for the annuity payable to any person to ontinue for a term ertain (not exeeding ten years), notwithstanding his death within that term, or for the annuity payable to any person to terminate, or be suspended, on marriage, formation of a ivil partnership (or remarriage or formation of another ivil partnership) or in other irumstanes; 195 in the ase of an annuity whih is to ontinue for a term ertain, for the annuity to be assignable by will, and in the event of any person dying entitled to it, for it to be assignable by his personal representatives in the distribution of the estate so as to give effet to a testamentary disposition, or to the rights of those entitled on intestay, or to an appropriation of it to a legay or to a share or interest in the estate. (4) So muh of subsetion (1) of this setion as provides that an annuity shall be treated, in whole or in part, as earned inome of the annuitant shall apply only in relation to the annuitant to whom the annuity is made payable by the terms of the ontrat. (5) The foregoing provisions of this setion shall apply in relation to a ontribution under a trust sheme approved by the Assessor as they apply in relation to a premium under an annuity ontrat so approved, with the modifiation that, for the onditions as to the person with whom the ontrat is made, there shall be substituted a ondition that the sheme is established under the law of any part of, and administered in, the Isle of Man or the United Kingdom; and AT 3 of 1970 Page 65

66 Setion 49 Inome Tax At 1970 () is established for the benefit of individuals engaged in or onneted with a partiular oupation (or one or other of a group of oupations), and for the purpose of providing retirement annuities for them, with or without subsidiary benefits for their families or dependants; and is so established under irrevoable trusts by a body of persons omprising or representing a substantial proportion of the individuals so engaged in the United Kingdom, or of those so engaged in the Isle of Man, or of those so engaged in England, Wales, Sotland or Northern Ireland, and with the neessary adaptations of other referenes to the ontrat or the person with whom it is made. (6) Exemptions from inome tax shall be allowed in respet of inome derived from investments or deposits of any fund maintained for the purposes of and approved under this At. (6A) In subsetion (6) above, investments inludes ontrats entered into in the ourse of dealing in finanial futures or traded options. 196 (7) The Assessor may at any time, by notie in writing given to the persons by and to whom premiums are payable under any ontrat for the time being approved under this setion, or to the trustees, or other persons having the management of any sheme so approved, withdraw the approval on suh grounds and from suh date as may be speified in the notie. (8) Notwithstanding that a valid eletion is in fore under setion 65A of this At (eletion for joint assessment), for the purposes of this setion and setions 50 and 50A, an individual s relevant earnings shall not inlude any inome of the spouse or ivil partner of that individual. 197 (9) Subjet to the last foregoing subsetion, relevant earnings in relation to any individual means for the purposes of this At any inome of his hargeable to tax for the year of assessment in question, being either () (d) inome arising in respet of remuneration from an offie or employment of profit held by him other than a pensionable offie or employment; or inome from any property whih is attahed to or forms part of the emoluments of any suh offie or employment of profit held by him; or inome whih is immediately derived by him from the arrying on or exerise by him of his trade, profession or voation either as an individual or, in the ase of a partnership, as a partner personally ating therein; or inome treated as earned inome by virtue of its being inome from patent rights arising to an individual where the patent was Page 66 AT 3 of 1970

67 Inome Tax At 1970 Setion 49 granted for an invention atually devised by him, whether alone or with any other person, but does not inlude any remuneration as diretor of an investment ompany (as defined in setion one hundred and twenty of this At). (10) For the purposes of this At an offie or employment is a pensionable offie or employment if, and only if, servie in it is servie to whih a sponsored superannuation sheme relates (not being a sheme under whih the benefits provided in respet of that servie are limited to a lump sum payable on the termination of the servie through death or disability before the age of seventy or some lower age), but referenes to a pensionable offie or employment apply whether or not the duties are performed wholly or partly in the Isle of Man or the holder is hargeable to tax in respet of it: Provided that servie in an offie or employment shall not for the purposes of this definition be treated as servie to whih a sponsored superannuation sheme relates by reason only of the fat that the holder of the offie or employment might (though he does not) partiipate in the sheme by exerising or refraining from exerising an option open to him by virtue of that servie. (11) In the last foregoing subsetion a sponsored superannuation sheme means a sheme or arrangement relating to servie in partiular offies or employments and having for its objet or one of its objets to make provision in respet of persons serving therein against future retirement or partial retirement, against future termination of servie through death or disability, or against similar matters, being a sheme or arrangement under whih any part of the ost of the provision so made is or has been borne otherwise than by those persons by reason of their servie (whether it is the ost or part of the ost of the benefits provided, or of paying premiums or other sums in order to provide those benefits, or of administering or instituting the sheme or arrangement); but for this purpose a person shall be treated as bearing by reason of his servie the ost of any payment made or agreed to be made in respet of his servie, if that payment or the agreement to make it is treated under the Inome Tax Ats as inreasing his inome, or would be so treated if he were hargeable to tax in respet of his emoluments from that servie. 49A Contrats for dependants or life insurane (1) The Assessor may approve under this setion a ontrat the main objet of whih is the provision of an annuity for the spouse or ivil partner of the individual, or for any one or more dependants of the individual, 198 a ontrat the sole objet of whih is the provision of a lump sum on the death of the individual before he attains the age of AT 3 of 1970 Page 67

68 Setion 49 Inome Tax At 1970 (2) The Assessor shall not approve the ontrat unless it appears to him that it is made by the individual with a person lawfully arrying on in the Isle of Man or the United Kingdom the business of granting annuities on human life. (3) The Assessor shall not approve a ontrat under subsetion (1) above unless it appears to him to satisfy all the following onditions, that is () (d) (e) that any annuity payable to the spouse or ivil partner or dependant of the individual ommenes on the death of the individual, 200 that any annuity payable to the individual ommenes at a time after the individual attains the age of 60, and, unless the individual s annuity is one to ommene on the death of a person to whom an annuity would be payable under the ontrat if that person survived the individual, an not ommene after the time when the individual attains the age of 75, 201 that the ontrat does not provide for the payment by the person ontrating with the individual of any sum, other than any annuity payable to the individual s spouse or ivil partner or dependant, or to the individual exept, in the event of no annuity beoming payable under the ontrat, any sums payable by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits, 202 that the ontrat does not provide for the payment of any annuity otherwise than for the life of the annuitant, that the ontrat does inlude provision seuring that no annuity payable under it shall be apable in whole or in part of surrender, ommutation or assignment. (4) The Assessor may, if he thinks fit, and subjet to any onditions that he thinks proper to impose, approve a ontrat under subsetion (1) above notwithstanding that, in one or more respets, he is not satisfied that the ontrat omplies with the provisions of paragraphs to (e) of subsetion (3) above. (5) Subsetions (2) and (3) of setion 49 above shall not apply to the approval of a ontrat under this setion. (6) The main purpose of a trust sheme, or part of a trust sheme, within setion 49(5) above may be to provide annuities for the wives, husbands and dependants of the individuals, or lump sums payable on death and in that ase the approval of the trust sheme shall be subjet to the preeding provisions of this setion with any neessary modifiations, and not subjet to subsetions (2) and (3) of setion 49 above, the provisions of this setion and of setions 49 and 50 of and the Shedule to this At shall apply to the sheme or part of the Page 68 AT 3 of 1970

69 Inome Tax At 1970 Setion 50 () sheme when duly approved as it applies to a ontrat approved under this setion, setion 49(6) above (tax relief for investments or deposits of the fund) shall apply to any duly approved trust sheme, or part of a trust sheme. 203 (7) Exept as otherwise provided in this setion or in setions 49 and 50 of or the Shedule to this At, any referene in the Inome Tax Ats to a ontrat or sheme approved under setion 49 above shall inlude a referene to a ontrat or sheme approved under this setion Nature and amount of relief for qualifying premiums [1959/2] (1) Where relief is to be given under this setion in respet of any qualifying premium paid by an individual, the amount of the premiums paid in a year of assessment shall, subjet to the provisions of this setion, be deduted from or set off against his relevant earnings for that year of assessment. 205 (1A) (1B) Subjet to the provisions of this setion and of Part I and Part II of the First Shedule of the prinipal At (as amended), the amount whih may be deduted or set off in any year of assessment (whether in respet of one or more qualifying premiums, and whether or not inluding premiums in respet of a ontrat approved under setion 49A of this At) shall not be more than 17.5 per ent. of the individual s net relevant earnings for that year of assessment. 206 Subjet to the provisions of this setion, the amount whih may be deduted or set off in any year of assessment in respet of qualifying premiums paid under a ontrat approved under setion 49A of this At (whether in respet of one or more suh premiums) shall not be more than 5 per ent. of the individual s net relevant earnings for that year of assessment. 207 (1BB) An individual who pays a qualifying premium in a year of assessment (whether or not a year for whih he has relevant earnings) may before the end of that year elet that the premium shall be treated as paid in the last preeding year of assessment; or if he had no net relevant earnings in the year referred to in paragraph above, in the last preeding year of assessment but one; and where an eletion is made under this subsetion in respet of a premium the other provisions of setions 49 to 50 shall have effet as if the premium had been paid in the year speified in the eletion and not in the year in whih it was atually paid. 208 (1C), (2), (2A) and (2B) [Repealed] 209 AT 3 of 1970 Page 69

70 Setion 50 Inome Tax At 1970 (3) For the purposes of relief under this setion, an individual s relevant earnings are those earnings after dedutions allowable in omputing profits or gains but before giving effet to allowanes falling to be made under setion twenty-nine of this At (but after taking into aount the amounts on whih harges fall to be so made), and referenes to inome in the following provisions of this setion (other than referenes to total inome) shall be onstrued similarly. (4) Subjet to the following provisions of this setion net relevant earnings means, in relation to any individual, the amount of his relevant earnings for the year of assessment in question, less the amount of any dedutions falling to be made from the relevant earnings in omputing for the purposes of tax his total inome for that year, being (5) [Repealed] 212 dedutions in respet of payments made by him; or dedutions in respet of losses or of allowanes under setion twenty-nine of this At, being losses or allowanes arising from ativities, profits or gains of whih would be inluded in omputing relevant earnings of the individual or of the individual s spouse or ivil partner for the year or a later year of assessment. (6) Where an individual s inome for any year of assessment onsists partly of relevant earnings and partly of other inome, then as far as may be any dedutions whih fall to be made in omputing his total inome, and whih may be treated in whole or in part either as made from relevant earnings or as made from other inome, shall be treated for the purposes of this setion as being made from those relevant earnings in so far as they are dedutions in respet of any suh loss or allowane as is mentioned in paragraph of subsetion (4) of this setion, and otherwise as being made from that other inome. (7) An individual s net relevant earnings for any year of assessment are to be omputed without regard to any relief whih falls to be given for that year under this setion either to the individual or to the individual s wife or husband. (8) Where relief under this setion for any year of assessment is laimed and allowed (whether or not relief falls to be given for that year), and afterwards there is made any additional assessment, alteration of an assessment, or other adjustment of the laimant s liability to tax, there shall be made also suh adjustments, if any, as are onsequential thereon in the relief allowed or given under this setion for that or any subsequent year of assessment. (9) Where relief under this setion is laimed and allowed for any year of assessment in respet of any payment, relief shall not be given in respet of it under any other provision of the Inome Tax Ats for the same or a Page 70 AT 3 of 1970

71 Inome Tax At 1970 Setion 50 later year of assessment nor (in the ase of a payment under an annuity ontrat) in respet of any other premium or onsideration for an annuity under the same ontrat. 213 (10) The allowanes mentioned in paragraph of subsetion (4) of this setion shall not be treated as inluding amounts arried forward from a year of assessment earlier than the year A Carry-forward of unused relief under s 50 (1) Where the ondition in setion 49(1) above is satisfied as respets the whole or part of a year of assessment but there is unused relief for that year, that is to say, an amount whih ould have been deduted from or set off against the individual s relevant earnings for that year under setion 50(1) above if he had paid a qualifying premium in that year; or the qualifying premium or premiums paid by him in that year had been greater, relief may be given under setion 50 above, up to the amount of the unused relief, in respet of so muh of any qualifying premium or premiums paid by the individual in any of the next six years of assessment as exeeds the maximum applying for that year under setion 50(1A) above. (2) Relief by virtue of this setion shall be given for an earlier year rather than a later year, the unused relief taken into aount in giving relief for any year being deduted from that available for giving relief in subsequent years and unused relief derived from an earlier year being exhausted before unused relief derived from a later year. (3) Where a relevant assessment to tax in respet of a year of assessment beomes final and onlusive more than six years after the end of that year and there is an amount of unused relief for that year whih results from the making of the assessment that amount shall not be available for giving relief by virtue of this setion for any of the six years following that year; but the individual may, within the period of six months beginning with the date on whih the assessment beomes final and onlusive, elet that relief shall be given under setion 50 above, up to that amount, in respet of so muh of any qualifying premium or premiums paid by him within that period as exeeds the maximum applying under setion 50(1A) above for the year of assessment in whih they are paid; and to the extent to whih relief in respet of any premium or premiums is given by virtue of this subsetion it shall not be given by virtue of subsetion (1) above. AT 3 of 1970 Page 71

72 Setion 50 Inome Tax At 1970 (4) In this setion a relevant assessment to tax means an assessment on an individual s relevant earnings or on the profits or gains of a partnership from whih the individual derives relevant earnings. 214 Relief et for international personal and oupational pension shemes B Relief for ertain personal and oupational pension shemes (1) Exemption from inome tax shall, on a laim being made, be allowed in respet of inome derived from investments or deposits if, or to suh extent as the Assessor is satisfied that, it is inome from investments or deposits held for the purposes of a pension sheme whih is approved under subsetion (2). (2) Subjet to subsetion (3), the Assessor may, if he thinks fit, having regard to the fats of a partiular ase, and subjet to suh reasonable onditions, if any, as he thinks proper to attah to the approval, approve a pension sheme for the purposes of this setion. (3) The Assessor shall not approve a sheme under subsetion (2) unless the sheme is a personal pension sheme (i) (ii) (iii) (iv) whih is made by an individual who is not resident in the Island and whose employment, trade or profession, if any, is exerised outside the Island; whih is properly established under irrevoable trusts governed by the laws of the Island; whih has for its sole or main purpose the provision of relevant benefits for the individual; and the administrator of whih is resident in the Island; or is an oupational pension sheme (i) (ii) (iii) (iv) whih is properly established under irrevoable trusts in relation to a trade or undertaking arried on wholly or partly outside the Island; whih has for its sole or main purpose the provision of relevant benefits in respet of persons employment in the trade or undertaking wholly outside the Island; whih is reognised by the employer and employees in the trade or undertaking; and the administrator of whih is resident in the Island. (4) For the purposes of subsetion (3), the performane of duties in the Island whih are merely inidental to the performane of other duties outside the Island, shall be treated as performed outside the Island. Page 72 AT 3 of 1970

73 Inome Tax At 1970 Setion 50 (5) The payment of a relevant benefit made under a sheme approved under subsetion (2) to a person not resident in the Island shall not be inome in respet of whih inome tax may be imposed under the Inome Tax Ats. (6) The Treasury may by regulations restrit the Assessor s disretion to approve a sheme under this setion by referene to suh riteria or irumstanes as may be speified in the regulations. (7) In this setion administrator means the person responsible for the management of the sheme; relevant benefits means any pension, annuity, lump sum, gratuity or other like benefit given or to be given on retirement or death, or in antiipation of retirement. (8) Regulations under subsetion (6) shall not ome into operation unless they are approved by Tynwald C Relief for ertain personal and oupational pension shemes (1) Exemption from inome tax shall, on a laim being made, be allowed in respet of inome derived from investments or deposits if, or to the extent that the Assessor is satisfied that, it is inome from investments or deposits held for the purposes of a pension sheme approved under subsetion (2). (2) Subjet to subsetion (3), the Assessor may, if he thinks fit, having regard to the fats of a partiular ase, and subjet to suh reasonable onditions, if any, as he thinks proper to attah to the approval, approve a pension sheme for the purposes of this setion. (3) The Assessor shall not approve a sheme unless the sheme satisfies the onditions in subsetion (4) or (5). (4) The ondition is that the sheme is a personal pension sheme () (d) (e) (f) where the arrangement within the sheme is made by an individual; whih is properly established under irrevoable trusts governed by the laws of the Island; whose sole purpose is the provision of relevant benefits for the individual; from whih the payment of relevant benefits annot ommene until the member attains the age of 55; in whih at least 70% of a member s tax-relieved sheme funds are to provide the member with an inome for life; the administrator and at least one trustee of whih are resident in the Island; and AT 3 of 1970 Page 73

74 Setion 50 Inome Tax At 1970 (g) the administrator of whih has a fixed plae of business in the Island from whih the administrator s business is onduted. (5) The ondition is that the sheme is an oupational pension sheme () (d) (e) (f) (g) whih is properly established under irrevoable trusts in relation to a trade or undertaking; whose sole purpose is the provision of relevant benefits in respet of persons employment in the trade or undertaking; whih is reognised by the employer and employees in the trade or undertaking; from whih the payment of relevant benefits annot ommene until the member attains the age of 55; in whih at least 70% of a member s tax-relieved sheme funds are to provide the member with an inome for life; the administrator and at least one trustee of whih are resident in the Island; and the administrator of whih has a fixed plae of business in the Island from whih the administrator s business is onduted. (6) The relevant benefit may ommene before the member attains the age of 55 if it is payable on the member beoming inapable through infirmity of body or mind of arrying on his own oupation or any oupation of a similar nature for whih the member is trained. (7) A relevant benefit made under a sheme approved under subsetion (2) shall be payable to a person without the dedution of inome tax but shall be inome in respet of whih inome tax may be imposed under the Inome Tax Ats. (8) Any ontribution made by a member or any other person into any sheme approved under subsetion (2) shall not be allowed as a dedution against the total inome of that member or as a dedution against the profit of any person D Charge to tax: unauthorised payments (1) Any payment made out of funds whih are or have been held for the purposes of a sheme approved under setion 50C(2) to or for the benefit of a person and whih is not expressly authorised by the rules of the sheme shall be an unauthorised payment and shall be hargeable to inome tax on the member in the year of assessment in whih the payment is made. (2) Any inome tax hargeable under subsetion (1) shall be aounted for and paid over to the Assessor by the administrator within 14 days of the date on whih the unauthorised payment is made. (3) Any tax paid by the administrator under subsetion (2) Page 74 AT 3 of 1970

75 Inome Tax At 1970 Setion 50 shall be deemed to be paid on behalf of the member; and shall be deduted from the unauthorised payment. (4) The administrator shall give to the member written notie of the dedution of the harge in suh form as the Assessor may approve. (5) The Assessor shall issue to the member a ertifiate in respet of the dedution and that ertifiate shall have the same effet as an assessment made upon the member E Supplementary harge on unauthorised payments (1) In addition to the inome tax harge speified in 50D(1), if an unauthorised payment is made, the member will be liable to a supplementary harge of 20% of the unauthorised payment s value. (2) The value of the unauthorised payment to be used for alulating the supplementary harge shall be that before making any dedution in aordane with setion 50D(3). (3) The Assessor may, if he thinks fit, remit any supplementary harge or portion of a harge payable under this setion. (4) The supplementary harge shall be payable to the Assessor by the administrator as a debt due in all respets as if it were inome tax due under the Inome Tax Ats. (5) The supplementary harge shall be aounted for and paid over to the Assessor by the administrator within 14 days of the date on whih the relevant payment is made. (6) Any supplementary harge paid by the administrator under subsetion (4) shall be deemed to be paid on behalf of the member; and shall be deduted from the unauthorised payment. (7) The administrator shall give to the member written notie of the dedution of the supplementary harge in suh form as the Assessor may approve. (8) The Assessor shall issue to the member a ertifiate in respet of the dedution and that ertifiate shall have the same effet as an assessment made upon the member. (9) A member of an approved sheme may appeal to the Commissioners against a supplementary harge under this setion in the same manner as an appeal against an assessment to inome tax and the Commissioners may onfirm, resind or amend the harge. 219 AT 3 of 1970 Page 75

76 Setion 51 Inome Tax At F Administration (1) If an individual is in reeipt of relevant inome within the meaning of the Inome Tax (Rates of Inome Tax) (Resident Individuals) (Capping) Order 2010 [SD19/10] or in any similar Order whih revokes and replaes that Order and that individual also reeives an unauthorised payment under setion 50D(1), the maximum amount of inome tax under the Order shall be inreased by a sum equal to 20% of the unauthorised payment. (2) Despite anything in Chapter I of Part III of the Pension Shemes At 1993 (of Parliament) as it has effet in the Isle of Man; or any Regulations made under that At, a personal pension sheme approved under setion 50C(2) shall be regarded for the purposes of that Chapter as an appropriate sheme and an appropriate sheme ertifiate may be issued aordingly in aordane with setion 7(1) of that At. (3) The Treasury may by regulations restrit the Assessor s disretion to approve a sheme under setion 50C(2) by referene to suh riteria or irumstanes as may be speified in the regulations; and introdue proedures whih the administrator of suh a sheme must follow in order to gain approval. (4) Regulations under subsetion (3) shall not ome into operation unless they are approved by Tynwald. (5) In setions 50C, 50D, 50E and this setion administrator means the person responsible for the management of a sheme approved under setion 50C(2). (6) In setion 50C relevant benefits means any pension, annuity, lump sum, gratuity or other like benefit given or to be given on retirement or death, or in antiipation of retirement. (7) In setions 50D, 50E and this setion unauthorised payment has the meaning given by setion 50D(1). 220 Continuation of Exemptions, Allowanes and Relief Amendments as to friendly soieties [1959/3] (1) [Repealed] 222 (2) If, in the event of a dissolution of a soiety to whih setion 18 of this At applies, any annuity speified in subsetion (2) of that setion eases Page 76 AT 3 of 1970

77 Inome Tax At 1970 Setion 52 to be paid, or any ontrat for the payment of suh an annuity fails in whole or in part, no payment shall be made in respet thereof out of the funds of the soiety to the annuitant or other person entitled to the benefit of the ontrat, but any sum whih, but for this provision, would have been paid to him shall be applied in purhasing for the benefit of the annuitant an annuity (for the like term and subjet to the like onditions against surrender, ommutation or assignment) from a person lawfully arrying on in the Isle of Man or the United Kingdom a business of granting annuities on human life Purhased life annuities other than retirement annuities [1959/4] (1) A purhased life annuity (not being of a desription exepted by subsetion (5) of this setion) shall, for the purposes of the provisions of the Inome Tax Ats relating to tax on annuities and other annual payments, be treated as ontaining a apital element and, to the extent of the apital element, as not being an annual payment or in the nature of an annual payment; but the apital element in suh an annuity shall be taken into aount in omputing profits or gains or losses for other purposes of those Ats in any irumstanes in whih a lump sum payment would be taken into aount. (2) In the ase of any purhased life annuity to whih this setion applies (2A) () (d) the apital element shall be determined by referene to the amount or value of the payments made or other onsideration given for the grant of the annuity; and the proportion whih the apital element in any annuity payment bears to the total amount of that payment shall be onstant for all payments on aount of the annuity; and where neither the term of the annuity nor the amount of any annuity payment depends on any ontingeny other than the duration of a human life or lives, that proportion shall be the same proportion whih the total amount or value of the onsideration for the grant of the annuity bears to the atuarial value of the annuity payments as determined in aordane with the next following subsetion; and where the last foregoing paragraph does not apply, the said proportion shall be suh as may be just, having regard to that paragraph and to the ontingenies affeting the annuity. Where, in the ase of any purhased life annuity to whih this setion applies, the amount of any annuity payment (but not the term of the annuity) depends on any ontingeny other than the duration of a human life or lives the apital element shall be determined by referene AT 3 of 1970 Page 77

78 Setion 52 Inome Tax At 1970 () (d) (i) (ii) to the amount or value of the payments made or other onsideration given for the grant of the annuity (in this setion referred to as the purhase prie of the annuity), and to the expeted term of the annuity, as at the date when the first annuity payment began to arue, expressed in years (and any odd fration of a year), and determined by referene to the presribed tables of mortality, that is to say, the tables omprised in Table A8 set out in Appendix A on pages 113 to 115 of the booklet entitled Continuous Mortality Investigation Reports Number 10 published by the Institute of Atuaries and the Faulty of Atuaries in 1990, or suh other tables as may be speified by order made by the Treasury and laid before Tynwald, and 224 in head (ii) above term means the period from the date when the first annuity payment begins to arue to the date when the last payment beomes payable, the apital element in any annuity payment made in respet of a period of twelve months shall be a fration 1/E of the purhase prie, where E is the said expeted term, the apital element in any annuity payment made in respet of a period of less than, or more than, twelve months shall be the amount at above redued, or as the ase may be inreased, in the same proportion as the length of that period bears to a period of twelve months, subsetion (2) above shall not apply, but paragraphs and of subsetion (3) below shall apply as they apply to that subsetion, and in applying subsetion (2)(d) above where both the amount and the term of the annuity depend on any ontingeny other than the duration of a human life or lives, regard shall be had to this subsetion (and not to subsetion (2)() above) as well as to the ontingenies affeting the annuity. 225 (3) For the purposes of the last foregoing subsetion any entire onsideration given for the grant of an annuity and for some other matter shall be apportioned as appears just (but so that a right to a return of premiums or other onsideration for an annuity shall not be treated for this purpose as a distint matter from the annuity); where it appears that the amount or value of the onsideration purporting to be given for the grant of an annuity has affeted, or has been affeted by, the onsideration given for some other matter, the aggregate amount or value of those onsiderations shall be treated as one entire onsideration given for both and Page 78 AT 3 of 1970

79 Inome Tax At 1970 Setion 52 () shall be apportioned under the foregoing paragraph aordingly; and the atuarial value of any annuity payments shall be taken to be their value as at the date when the first of those payments begins to arue, that value being determined by referene to the presribed tables of mortality and without disounting any payment for the time to elapse between that date and the date it is to be made. (4) For the purposes of this setion life annuity means an annuity payable for a term ending with (or at a time asertainable only by referene to) the end of a human life, whether or not there is provision for the annuity to end during the life on the expiration of a fixed term or on the happening of any event or otherwise, or to ontinue after the end of the life in partiular irumstanes, and purhased life annuity means a life annuity granted for onsideration in money or money s worth in the ordinary ourse of a business of granting annuities on human life. (5) This setion shall not apply (bb) () (d) (e) to any annuity whih would, apart from this setion, be treated for the purposes of the provisions of the Inome Tax Ats relating to tax on annuities and other annual payments as onsisting to any extent in the payment or repayment of a apital sum; or to any annuity where the whole or part of the onsideration for the grant of the annuity onsisted of sums satisfying the onditions for relief from tax under setion 50 of this At (whih relates to the nature and amount of relief for qualifying premiums); or 226 to any annuity payable under a substituted ontrat within the meaning of setion 2(3) of the Inome Tax At 1980; or 227 to any annuity purhased in pursuane of any diretion in a will, or to provide for an annuity payable by virtue of a will or settlement out of inome of property disposed of by the will or settlement (whether with or without resort to apital); or to any annuity purhased under or for the purposes of any sponsored superannuation sheme (as defined in subsetion (11) of setion forty-nine of this At), or any sheme approved under that setion, or in pursuane of any obligation imposed, or offer or invitation made, under or in onnetion with any suh sheme, or to any other annuity purhased by any person in reognition of another s servies (or past servies) in any offie or employment, or to any annuity payable under approved personal pension arrangements within the meaning of Part 1 of the Inome Tax At AT 3 of 1970 Page 79

80 Setion 53 Inome Tax At 1970 (6) As respets tax for the year and subsequent years of assessment, this setion shall extend to life annuities whenever purhased or ommening; but any notie given before the thirty-first Marh, 1959, of a deision as to an annuity being or not being a purhased life annuity to whih this setion applies or as to the amount of the apital element (if any), shall be treated as given on that day Treatment of retirement annuities and purhased life annuities [1959/5] (1) Relief shall not be given under setion fifty of this At in respet of a qualifying premium exept on a laim made to and allowed by the Assessor, and any question whether an annuity is a purhased life annuity to whih setion fifty-two of this At applies, or what is the apital element in suh an annuity, shall be determined by the Assessor: Provided that any person aggrieved by any deision of the Assessor on any suh laim may appeal within the presribed time to the Commissioners, and any person aggrieved by any deision of the Assessor on any suh question as to a purhased life annuity may appeal within the presribed time to the Commissioners. (2) Save as otherwise provided in this At, the proedure to be adopted in giving effet thereto shall be suh as may be presribed. (3) The Treasury may make regulations for presribing anything whih is to be presribed under setions forty-nine to fifty-three inlusive of this At, and the regulations may apply for the purposes of those setions or of the regulations any other provision of the Inome Tax Ats (with or without modifiations), and in partiular the provisions of setion ninety of this At as to the statement of a ase on a point of law for the opinion of the Staff of Government Division. 230 (4) Regulations under the last foregoing subsetion may in partiular make provision as to the time limit for making any laim for relief from or repayment of tax under the said setions forty-nine to fifty-three inlusive of this At, and (for the purposes of the last foregoing setion) as to all or any of the following matters, that is to say () as to the information to be furnished in onnetion with the determination of any question whether an annuity is a purhased life annuity to whih that setion applies, or what is the apital element in an annuity, and as to the persons who may be required to furnish any suh information; as to the manner of giving effet to the deision on any suh question, and as to the making of assessments for the purpose on the person entitled to the annuity; as to the extent to whih the deision on any suh question is to be binding, and the irumstanes in whih it may be reviewed. Page 80 AT 3 of 1970

81 Inome Tax At 1970 Setion Relief from double taxation [1955/1] (1) If the Counil of Ministers by order delares that arrangements speified in the order ( appliable arrangements ) have been made with the government of any other territory with a view to preventing the imposition of, or otherwise affording relief from, double taxation in relation to the domesti laws of the Island onerning inome tax and any other taxes to whih the arrangements relate; and the laws of the other territory onerning any taxes to whih the arrangements relate, and that it is expedient that those arrangements should have effet, then those arrangements shall have effet notwithstanding anything in any enatment. 231 (1A) Appliable arrangements need not be onerned exlusively with the matters referred to in subsetion (1) and may make provision for other matters inluding, but not limited to, the matters speified in subsetion (1B). 232 (1B) Appliable arrangements may make provision for () the attribution or adjustment of inome, profits or gains for the purposes of the taxes to whih the arrangements relate; the exhange of information neessary or foreseeably relevant for (i) arrying out the arrangements; or (ii) administering and enforing (A) (B) the domesti laws of the Island; or the laws of the other territory, onerning taxes of every kind and desription whih may be imposed under those laws; questions or disputes onerning the interpretation or appliation of the arrangements to be dealt with in aordane with the arrangements; (d) inidental and supplemental matters. 233 (1C) (1D) An order under this setion may modify the effet of setions 62A and setions 105C to 105O for the purposes of implementing or otherwise giving effet to the appliable arrangements. 234 An order under this setion may inlude inidental, supplemental, transitional and saving provisions. 235 (1E) Subsetions (1A) to (1D) do not limit subsetion (1). 236 AT 3 of 1970 Page 81

82 Setion 55 Inome Tax At 1970 (1F) The provisions of setions 19(2), 20 and 21 of the Inome Tax At 2003 apply in respet of the dislosure of information under appliable arrangements within the meaning of this setion in the same manner and to the same extent as they apply in respet of the dislosure of information under arrangements referred to in setion 19 of the Inome Tax At (1G) An order under this setion must not ome into operation unless it is approved by Tynwald (2) [Repealed] 240 (3) On the making of an order under this setion with respet to arrangements relating to any territory setion fifty-seven of this At (whih relates to relief in respet of foreign inome tax) eases to have effet in relation to any inome in respet of whih relief from double taxation is afforded in aordane with the arrangements, exept in so far as the arrangements otherwise provide (4) The Treasury may from time to time make regulations for arrying out the provisions of any arrangements having effet under this setion, and may, in partiular, by those regulations provide for seuring that relief from taxation imposed by the law of the territory to whih any suh arrangements relate does not enure to the benefit of persons not entitled thereto, and the provisions of subsetion (3) of setion ninety-five of this At shall apply as if the regulations were regulations made in aordane with suh setion. 243 (5) Regulations under subsetion (4) must not ome into operation unless they are approved by Tynwald Tax redits [1955/2 amended by 1964/5] (1) The provisions of this setion shall have effet where, under arrangements having effet under the last preeding setion of this At, tax payable in respet of any inome in the territory with the government of whih the arrangements are made is to be allowed as a redit against tax payable in respet of that inome in the Isle of Man; and in this setion the expression foreign tax means any tax payable in that territory whih under the arrangements is to be so allowed. (2) The amount of the inome tax hargeable in respet of the inome shall be redued by the amount of the redit: Provided that redit shall not be allowed against inome tax for any year of assessment or, in the ase of a orporate taxpayer, aounting period unless the person entitled to the inome is resident in the Isle of Man in that year. 245 Page 82 AT 3 of 1970

83 Inome Tax At 1970 Setion 55 (3) The redit shall not exeed the amount of relief whih would be omputed in aordane with setion 57 of this At. 246 (4) Without prejudie to the provisions of the preeding subsetion, the total redit for foreign tax to be allowed to a person for any year of assessment or, in the ase of a orporate taxpayer, aounting period under all arrangements having effet under the last preeding setion of this At shall not exeed the total inome tax payable by him for the year of assessment or, in the ase of a orporate taxpayer, aounting period other than inome tax payable by him as an agent for a person not resident in the Isle of Man. 247 (5) In omputing the amount of the inome () no dedution shall be allowed in respet of foreign tax (whether in respet of the same or any other inome); where the inome tax hargeable depends upon the amount reeived in the Isle of Man, the said amount shall be inreased by the appropriate amount of the foreign tax in respet of the inome; where the inome inludes a dividend and under the arrangements foreign tax not hargeable diretly or by dedution in respet of the dividend is to be taken into aount in onsidering whether any, and if so what, redit is to be given against inome tax in respet of the dividend the amount of the inome shall be inreased by the amount of the foreign tax not so hargeable whih falls to be taken into aount in omputing the amount of the redit. (6) Paragraphs and of the last preeding subsetion (but not the remainder thereof) shall apply to the omputation of total inome for the purposes of determining the rate mentioned in subsetion (3) of this setion, and shall apply thereto in relation to all inome in the ase of whih redit falls to be given for foreign tax under arrangements for the time being in fore under the last preeding setion of this At. (7) Where the arrangements provide, in relation to dividends of some lasses, but not in relation to dividends of other lasses, that foreign tax not hargeable diretly or by dedution in respet of dividends is to be taken into aount in onsidering whether any, and if so what, redit is to be given against inome tax in respet of the dividends; and a dividend is paid whih is not of a lass in relation to whih the arrangements so provide, then if the dividend is paid to a ompany whih ontrols, diretly or indiretly, not less than one half of the voting power in the ompany paying the dividend, redit shall be allowed as if the dividend were a dividend of a lass in relation to whih the arrangements so provide. AT 3 of 1970 Page 83

84 Setion 55 Inome Tax At 1970 (8) Credit shall not be allowed under the arrangements against inome tax hargeable in respet of the inome of any person for any year of assessment or period if he elets that redit shall not be allowed in the ase of his inome for that year. 248 (9) Any laim for an allowane by way of redit shall be made not later than six years after the end of the relevant year of assessment or, in the ase of a orporate taxpayer, aounting period in the form and manner required by the Assessor and in the event of any dispute as to the amount allowable the laim shall be subjet to appeal in like manner as an assessment is subjet to appeal. 249 (10) Where the amount of any redit given under the arrangements is rendered exessive or insuffiient by reason of any adjustment of the amount of any tax payable either in the Isle of Man or elsewhere, nothing in this At limiting the time for the making of assessments or laims for relief shall apply to any assessment or laim to whih the adjustment gives rise, being an assessment or laim made not later than six years in the ase of a non-orporate taxpayer or four years in the ase of a orporate taxpayer from the time when all suh assessments, adjustments and other determinations have been made, whether in the Isle of Man or elsewhere, as are material in determining whether any, and if so what, redit falls to be given A Relief in respet of repayment of ertain tax redits (1) Where by virtue of setions 231(3), 232(1), 278(2) and 790(1) of the Inome and Corporation Taxes At 1988 (an At of Parliament) the exess of a tax redit derived from a qualifying distribution under setion 231(1) of that At is paid to an individual who is resident in the Island, the payment of the exess of that tax redit shall not be inome in respet of whih inome tax may be imposed under the Inome Tax Ats. (2) Where the inome tax law of a ountry or territory outside the Isle of Man and the United Kingdom enables the payment of tax redits in irumstanes whih orrespond to those speified in the provisions of the At of Parliament mentioned in subsetion (1); and the whole or part of suh a tax redit is paid to an individual who is resident in the Island, the payment of the whole or part of that tax redit shall not be inome in respet of whih inome tax may be imposed under the Inome Tax Ats. 251 Page 84 AT 3 of 1970

85 Inome Tax At 1970 Setion [Repealed] Relief in respet of tax in other territories (A1) (B1) This setion only applies in respet of foreign tax mentioned in subsetion (1) whih has been paid in a territory outside the Island on inome arising from a soure within the territory in whih the foreign tax is paid. 253 In laiming a dedution under this setion, the amount of foreign tax to be used for the purposes of alulating the relief from Manx tax a person mentioned in subsetion (1) may laim is the amount of foreign tax whih would have been paid in the territory outside the Island had all reasonable steps been taken under the law of the territory; under double taxation arrangements made in relation to the territory, to minimise the amount of tax payable in the territory. 254 (C1) The steps mentioned in subsetion (B1) inlude laiming, or otherwise seuring the benefit of, reliefs, dedutions, redutions or allowanes; and making eletions for tax purposes. 255 (D1) For the purposes of subsetion (B1), a question as to the steps whih it would have been reasonable for a person to take is to be determined on the basis of what the person might reasonably be expeted to have done in the absene of relief from Manx tax under this setion. 256 (1) Subjet to subsetions (A1) to (D1), if any person resident in the Isle of Man, who has paid, by dedution or otherwise, foreign tax for that year under this At for any year of assessment or, in the ase of a orporate taxpayer, aounting period on inome arising in a territory outside the Island, proves to the satisfation of the Assessor that he has paid, by dedution or otherwise, foreign tax for that year or, as the ase requires, period in respet of that inome, he shall be entitled to relief from Manx tax paid or payable by him on the said inome of an amount equal to the lesser of the two following amounts the amount of foreign tax on the inome in respet of whih the dedution is laimed; and the marginal amount. 257 (2) For the purposes of this setion marginal amount means the amount obtained by the formula where A B AT 3 of 1970 Page 85

86 Setion 57 Inome Tax At 1970 (2A) A is the total amount of the inome tax payable by a person under this At for any year of assessment or, in the ase of a orporate taxpayer, aounting period (before the dedution of any relief under this setion or setion 54 of this At); and B is the total amount of inome tax whih would be payable by that person under this At in respet of that year of assessment or, in the ase of a orporate taxpayer, aounting period (before the dedution of any relief under this setion and setion 54 of this At) if the inome in respet of whih the dedution is to be allowed were to be disregarded; 258 foreign tax means any inome or surtax or any tax or harge imposed under the law of any territory outside the Isle of Man whih appears to the Assessor to orrespond with Manx inome tax. For the purposes of subsetion (2), the referenes to the total amount of inome tax payable or whih would be payable by a person shall inlude the amount of inome tax payable or whih would be payable in respet of any sum treated as inome reeived by that person by virtue of setion D108(1) (effet of release of loan). 259 (3) Where a dedution for foreign tax is to be allowed in respet of inome from more than one soure, subsetion (1) shall be applied suessively to the inome from eah soure, but so that on eah suessive appliation, subsetion (2) shall apply to the taxable inome exlusive of the inome to whih subsetion (1) has already been applied. (3A) The suessive appliation of subsetion (1) in respet of inome from more than one soure shall be in order of the amount of foreign tax for whih the relevant person is liable in respet of eah suh soure, the largest being taken first. 260 (4) Subjet to subsetion (5), a laim for relief under this setion shall be made within the 3 years next following the year of assessment or, in the ase of a orporate taxpayer, aounting period to whih it relates. 261 (5) A laim whih is not made within 3 years shall be admitted if it is made within the 6 months next following the date on whih the relevant amount of foreign inome has been asertained. (6) This setion does not apply in relation to inome in respet of whih relief from double taxation is afforded in aordane with arrangements made under setion 54, exept in so far as the arrangements otherwise provide. 262 (7) For the purpose of the appliation of this setion to inome arising in the United Kingdom where any relief from tax in the United Kingdom is allowable under setion 790 of the Inome and Corporation Taxes At 1988 Page 86 AT 3 of 1970

87 Inome Tax At 1970 Setion 58 () (an At of Parliament), as amended or replaed from time to time, in respet of tax paid under this At in respet of suh inome, the amount of the relief under this setion shall be redued by the amount of the relief in the United Kingdom; the amount of the tax in the United Kingdom in respet of suh inome shall be alulated without any redution on aount of any relief allowable under that setion in respet of Manx inome tax; a ertifiate issued in any partiular ase by or on behalf of the Commissioners of Inland Revenue in the United Kingdom shall be reeivable in evidene to show the amount of any relief from tax whih is allowable under that setion Relief on rental inome (1) In the ase of any assessment of inome arising from the rents of land in the Isle of Man, the amount of the assessment shall be redued in aordane with subsetion (2) below. (2) The redution whih, by virtue of subsetion (1) above may be made shall, subjet to subsetions (4) to (7) below, be the amounts of payments made for the osts to whih this setion applies by the person liable to pay inome tax in respet of inome arising from the rents of the land. 264 (3) In this setion and in setion 59, inome arising from the rents of land inludes rents from buildings and inludes the annual value of any land or building used rent free by any person other than the owner thereof for the purpose of residene or enjoyment. (4) No redution of assessment shall be made under this setion in respet of the osts to whih this setion applies, if or to suh extent as that ost has been otherwise allowed as a dedution in omputing inome for the purposes of inome tax. 265 (5) No allowane for depreiation, nor any further or other allowane shall be made for osts to whih this setion applies, in respet of land in relation to whih any person is entitled to a redution of assessment under this setion. 266 (6) An assessment shall not be redued under this setion in respet of a payment made by a person, to the extent to whih the payment has been, or will be balaned by the reeipt of insurane moneys, or reovered from, or in any other manner borne by, some other person, otherwise than by means of an amount on the profits or gains arising from whih the first mentioned person would be hargeable to inome tax. AT 3 of 1970 Page 87

88 Setion 58 Inome Tax At 1970 (7) All the provisions of this At whih relate to laims for any allowane or dedution, or the proof to be given with respet to those laims, shall apply to laims for allowane under this setion and the proof to be given with respet to those laims. (8) In this setion, osts to whih this setion applies means the osts of maintenane, repair, insurane or management of the land; and subjet to subsetion (9), interest paid on any bona fide loan obtained for the purpose of (i) (ii) the purhase of the land; and any payment for the maintenane, repair, insurane or management of the land, by the person liable to pay inome tax in respet of inome arising from the rents of the land. 267 (9) Subsetion (8) shall have effet in respet of a loan if and only if the interest payable on the loan is assessable to inome tax on the lender; and if the lender is a orporate taxpayer, the irumstanes speified in subsetion (10) apply. 268 (10) Those irumstanes are the orporate taxpayer has a fixed plae of business in the Island through whih its business is wholly or partly arried on; and the loan is arranged and made in the ourse of that business. 269 (11) Interest will not be allowed under this setion on a loan the purpose or one of the purposes of whih is the redution of the liability of any person to inome tax and the provisions of Shedule 1 to the Inome Tax At 1980 shall apply aordingly. 58A Relief on rental inome: pooling (1) Subjet to subsetion (2), where a person is assessed in respet of inome arising from the rents of two or more parels of land in one ownership the Assessor shall, for the alulation of relief under setion 58 of this At, treat the parels of land as one parel. (2) This setion shall not apply in respet of any parel of land let at a rent whih is less than the rent whih might reasonably be expeted to be obtained on a letting on the open market, subjet to the same terms and onditions (exept those relating to the amount of the rent), by a willing landlord to a willing tenant; or Page 88 AT 3 of 1970

89 Inome Tax At 1970 Setion 59 suh sum as is suffiient, taking one year with another, to defray the ost to the lessor of fulfilling his obligations under the lease and of meeting any osts to whih setion 58 of this At applies, whihever is the greater Carry forward against subsequent rents (1) Where in any year of assessment the amount of payments made for the osts to whih setion 58 applies in respet of any land exeeds the amount of inome arising from the rents of suh land, the person assessed may require that the exess be arried forward and that the assessment of inome arising from the rents of suh land in any subsequent year of assessment shall be redued, as far as may be, by the amount of suh exess. 273 (1A) No amount may be arried forward under this setion in respet of any exess if, or to suh extent as, that exess has been otherwise allowed as a dedution under setion 58A of this At. 274 (2) Any relief under this setion shall be given as far as possible from the first subsequent assessment and so far as it annot be given, then from the next assessment, and so on Allowanes given to individuals only [1946/40 amended by 1954(1)/3] The provisions of this At relating to exemptions and allowanes, exept those granted by setions 15, 17, 18, 18A, 19, 25, 29 and 54 to 59 of this At, shall apply only to an individual and not to an assoiation Allowanes not given to non-residents [1949/15(1)] In the ase of an individual who is not resident in the Isle of Man, no allowane, dedution or relief shall be given or made under setions 35, 35A, 35B, 35D, 35E, 39A, 39AA, 39B, 39C, 39D, 43A and 43B of this At A Tax treatment of VAT penalties et and repayment supplement (1) Where, under the Value Added Tax At 1996; () a provision of the Customs and Exise Ats (within the meaning of setion 184 of the Customs and Exise Management At 1986); or any instrument applied to the Island as part of the law of the Island by an order under setion 1 of the Customs and Exise At 1993 (inluding an order under any enatment repealed and replaed by that At), AT 3 of 1970 Page 89

90 Setion 61 Inome Tax At 1970 a person is liable to make a payment by way of surharge, ivil penalty or interest, the payment shall not be allowed as a dedution in omputing any inome, profits or losses for inome tax purposes. (2) A sum paid to any person by way of supplement under setion 79 of the Value Added Tax At 1996 shall be disregarded for all purposes of inome tax. 278 Charities 61B and 61C [Repealed] D Donations by assoiations to harities [P1986/41/29] (1) On a laim made by an assoiation whih is resident in the Isle of Man and is not an investment ompany, a qualifying donation made by the assoiation in any aounting period shall, subjet to the provisions of this setion, be allowed as dedutions against the total inome of the assoiation for that aounting period. 280 (2) A qualifying donation is a payment made by the assoiation to a harity, other than a payment whih is dedutible in omputing profits or any desription of profits for purposes of inome tax. (3) In any aounting period, the maximum amount allowable in aordane with subsetion (1) in respet of qualifying donations made by the assoiation shall be either the sum whih, at the end of the relevant aounting period, is presribed under setion 61F(1) of this At; or 281 1% of the taxable inome of the assoiation before the making of any allowane in respet of loss relief or apital allowanes, whihever is the greater. 282 (4) In this setion harity inludes (aa) the Manx Museum and National Trust; and any other orporation or soiety of persons, or any trust speified in an order made by the Treasury; and 283 the Manx Heritage Foundation, and, subjet to paragraphs, (aa) and, harity shall be onstrued in aordane with setion 15 of this At E Donations by individuals to harities (1) On a laim made by an individual who is resident in the Isle of Man, an amount equal to the amount of a qualifying donation made by the Page 90 AT 3 of 1970

91 Inome Tax At 1970 Setion 62 individual in any year of assessment shall be multiplied by the lower rate and the resulting amount shall, subjet to the provisions of this setion, be allowed as a dedution from his or her liability to inome tax for that year. 286 (2) A qualifying donation is a payment made by the individual to a harity, other than a payment for whih he is entitled to laim any relief or dedutions in respet of it under any other provision of the Inome Tax Ats. (3) In any year of assessment, the maximum amount allowable in aordane with subsetion (1) in respet of qualifying donations made by an individual shall be suh sum as may be presribed under setion 61F(l) of this At multiplied by the lower rate. 287 (3A) No dedution under subsetion (1) shall of itself entitle the individual to a refund or repayment of tax. 288 (4) In this setion harity has the meaning given by setion 61D(4) of this At (5) In this setion, lower rate has the same meaning as in setion 1. 61F Regulations for ss 61D and 61E (1) The Treasury may make regulations to provide for () the manner in whih appliations are to be made under setions 61D and 61E of this At; the maximum and minimum amount of the qualifying donation under those setions; the method by whih the payment of suh a donation may be proved. (2) Regulations under this setion shall not ome into operation unless they are approved by Tynwald. 291 Returns, et 62 Returns to be returned annually [1946/43 amended by 1949/16] (1) Every person liable to pay inome tax shall in respet of suh tax, before the sixth day of Otober in every year, or suh later date as the Treasury may by order determine, make and deliver to the Assessor a true and orret return of his whole inome for the year ended on the fifth day of April then last past, giving the partiulars of the items and soures of his inome, and speifying the items of inome in respet of whih inome tax is payable by law elsewhere, and the rate and amount of suh inome tax in the presribed form, and in the ase of an assoiation the AT 3 of 1970 Page 91

92 Setion 62 Inome Tax At 1970 partiulars as to the amount of suh inome distributed by way of dividend and the amount otherwise applied, and he shall sign the same: Provided that if the person making the return is unable to write, the same shall be signed with his mark before the Assessor, the Government Treasurer, a Justie of the Peae, Notary Publi, Commissioner for Oaths, Minister of Religion, or Medial Offier. 292 (2) A return may be delivered sealed up if it is addressed to the Assessor and supersribed with the words Inome Tax Return and with the full name and plae of abode or plae of business of the person by whom the same shall have been made. (3) Every person liable to make a return shall be supplied by the Assessor, on request, with a opy of the appropriate form on whih the return is to be made, either by prepaid post or otherwise. (4) Every person, whether he is or is not liable to pay inome tax, upon whom the Assessor may ause a notie to be served requiring him to make and deliver a return of his inome, shall, within 6 months after the date of the servie of suh notie, make and deliver to the Assessor a return as aforesaid. 293 (5) For the purposes of this setion, any person resident in the Isle of Man, or deriving inome therefrom, shall be deemed to be a person liable to pay Manx inome tax, although on assessment, or by reason of allowanes and dedutions, it may eventually be found that no inome tax is in fat payable by suh person in the Isle of Man. (6) This setion is subjet to setion 62A. 294 (7) This setion shall not apply to orporate taxpayers. 295 (8) The Assessor may require any person liable to deliver a tax return to inlude in their return suh additional information as the Assessor reasonably requires. Suh additional information inludes, in the ase of an individual required to deliver a tax return () details of any legal or equitable interest or shareholding in any ompany; details of the disposal or other transfer of any legal or equitable interest in a ompany (whether for onsideration or not); aounts in respet of self employment or rental inome as appropriate A Cessation of residene: return (1) Where in any year of assessment an individual eases to be regarded as resident in the Isle of Man, then notwithstanding setion 62, the individual shall within 6 months of that essation make and deliver to Page 92 AT 3 of 1970

93 Inome Tax At 1970 Setion 62 the Assessor a true and orret return of the whole of his inome arising in that year up to the date of the essation. (2) A return under subsetion (1) shall give the partiulars of the items and soures of inome, and speify the items of inome in respet of whih inome tax is payable by law elsewhere, and the rates and amount of suh tax. (3) The proviso to subsetion (1) of setion 62 and subsetions (2) and (3) of that setion shall apply in respet of a return under this setion as they have effet in respet of a return under that setion B Prodution and auditing of aounts (1) Where a person has made and delivered to the Assessor a return of inome in respet of any year of assessment, the Assessor may ause a notie to be served requiring him to prepare (or have prepared) suh aounts as the notie may require and deliver suh aounts within suh reasonable period as may be speified in the notie. (2) A notie under subsetion (1) may require that the aounts shall be ertified or audited in suh manner as is so required and by a person who holds a qualifiation referred to in setion 14(1) of the Companies At (3) Where a notie under subsetion (1) inludes a requirement under subsetion (2), the Treasury shall reimburse the amount of the diret aountany ost of the ertifiation or audit if () (d) the person on whom notie is served is under no obligation under any other statutory provision to have suh aounts ertified or audited; and the aounts were not otherwise required to be ertified or audited; and the person on whom notie is served has inurred the ost of the ertifiation or audit; and the amount of inome shown in the ertified or audited aounts does not vary by (i) (ii) more than 10% from the inome from the same soure shown in the original return; or if there is less than 10% variation, more than 10,000 from the inome from the same soure shown in the original return. (4) A person to whom a notie is given under this setion who fails to omply with the notie shall be guilty of an offene. (5) This setion is additional to and not in derogation of setion 105C. 299 AT 3 of 1970 Page 93

94 Setion 63 Inome Tax At C Prodution and auditing of aounts of orporate taxpayer (1) The Assessor may at any time ause a notie to be served on any orporate taxpayer requiring that taxpayer to deliver to the Assessor within suh reasonable period as is speified in the notie suh aounts in respet of suh aounting period as the notie requires. (2) Subsetions (2) to (4) of setion 62B shall apply in respet of a notie served under this setion as they apply in respet of a notie served under that setion. (3) The generality of this setion is not limited by setion 62B, B84 or any other provision of the Inome Tax Ats. (4) A orporate taxpayer must preserve those reords required to enable that taxpayer to omply with this setion for a minimum period of 6 years following the end of the aounting period to whih those reords relate. 300 (5) The reords preserved must orretly explain the ompany s transations; enable the ompany s finanial position to be determined with reasonable auray at any time; and () allow aounts required under this setion to be prepared. 63 Return in respet of partners [1946/45] (1) A return in respet of inome in whih two or more persons in opartnership are jointly onerned shall be made and delivered in the presribed form and in the manner provided by this At by any one of suh partners present in the Isle of Man on behalf of himself and the other partners so jointly interested whose names shall also be stated in the return, and the proportion of the profits to whih they are severally entitled. (2) In any ase where none of suh partners shall be present in the Isle of Man, then the return shall be made by the attorney or agent in the Isle of Man of suh partners or any of them having the reeipt of any inome of suh partner or any of them. (3) A partnership shall not be liable to pay inome tax on its profits, but eah partner shall be liable to pay inome tax at the appropriate rate in respet of his whole inome, inluding his share of the profits of the said partnership: Provided always that nothing in this setion ontained shall operate to release or extinguish any liability of the attorney or agent to pay Manx inome tax as attorney or agent of the individual partners. Page 94 AT 3 of 1970

95 Inome Tax At 1970 Setion 63 63A Returns in respet of members of limited liability ompanies (1) A return in respet of the inome of members from a limited liability ompany shall be made and delivered in the presribed form by the registered agent on behalf of the members; and shall state the names of the members and the proportion of the profits of the ompany to whih they are severally entitled, and the registered agent of a limited liability ompany shall for all the purposes of this At be deemed to be the agent of eah of the members of suh a ompany and aordingly, referenes in this At to a person s agent shall in relation to a member of a limited liability ompany be onstrued as inluding the registered agent of the ompany of whih he is a member. (2) The registered agent of a limited liability ompany shall have all suh rights of aess to the reords of the ompany as are neessary for him to perform his funtions as agent of the members of the ompany for the purposes of this At. (3) In any ase where there is no registered agent and there is a member present in the Isle of Man, then the return shall be made by that member. (4) A member of a limited liability ompany shall have all suh rights of aess to the reords of the ompany as are neessary for him to make a return in aordane with subsetion (3). (5) In any ase where there is no registered agent and no member is present in the Isle of Man, the return shall be made by the attorney or agent in the Isle of Man of suh members or any of them having the reeipt of any inome of suh member or any of them. (6) The Assessor may require any person making a return under this setion and any person on whose behalf a return is so made to appear before him to verify on oath the statements ontained in his return or to produe suh oral and doumentary evidene in support of the return for the information of the Assessor as the Assessor may require. (7) If the Assessor is not satisfied with the return made by any person under this setion, or the person fails to appear before him, or fails to produe the evidene required, or the Assessor is not satisfied with the evidene whih has been furnished, the Assessor shall make an assessment in suh sum as, aording to the best of his judgment, ought to be harged. (8) The Assessor may administer oaths for the purposes of this setion. (9) Setion 84 of this At shall not apply in respet of the returns of limited liability ompanies. 303 AT 3 of 1970 Page 95

96 Setion 63 Inome Tax At B 63C Power to all for douments (1) The Assessor may by notie in writing require a person speified in subsetion (2) to deliver to the Assessor or, if so required by the Assessor, to make available for inspetion by the Assessor, douments whih are in that person s possession or power and whih (in the Assessor s reasonable opinion) ontain, or may ontain, information relevant to any interest that another person may have in a orporate taxpayer; the residene status of that other person for the purposes of this At. (2) The persons speified for the purposes of subsetion (1) are a person liensed under setion 7 of the Finanial Servies At 2008 in respet of the provision of orporate servies; and a person, other than a person mentioned in subsetion, who is the seretary of a orporate taxpayer. (3) Before a notie is given under subsetion (1), the person to whom the notie is to be given must have been given a reasonable opportunity to deliver or make available the douments in question. (4) As an alternative to delivering douments to omply with a notie under subsetion (1), opies of douments may be delivered instead of the originals; but the opies must be in a form whih the Assessor reasonably requires; and if required by the Assessor in the ase of any douments speified in the requirement, the originals must be made available for inspetion by the Assessor in aordane with the requirement, and failure to omply with a requirement under this subsetion ounts as failure to omply with the notie. (5) A person who fails to omply with a requirement of the Assessor under subsetion (1) ommits an offene and is liable on summary onvition to ustody for a period not exeeding 6 months or to a fine not exeeding 5, Power to all for information relating to benefiial ownership (1) The powers onferred by this setion may be used for the purpose of enquiring into the identity of members of a orporate taxpayer. (2) The Assessor may by notie in writing require any person to deliver to the Assessor or, if so required by the Assessor, to make available for inspetion by the Assessor, suh douments as are in his possession or power and as (in the Assessor s opinion) ontain or may ontain, information relevant to Page 96 AT 3 of 1970

97 Inome Tax At 1970 Setion 64 () the present and past members of a orporate taxpayer; the names and addresses of those members; or any person who ats or has ated (in any apaity) on behalf of a member of a orporate taxpayer. (3) A person who, having been requested to do so, fails to deliver douments or information required under this setion, or who in giving suh information makes any statement whih that person knows to be false in a material partiular, ommits an offene and is liable on summary onvition to ustody for a period not exeeding 6 months or to a fine not exeeding 5, D Falsifiation, et of douments (1) Subjet to subsetion (2), it is an offene for a person intentionally to falsify, oneal, destroy or otherwise dispose of, or ause or permit the falsifiation, onealment, destrution or disposal of, a doument whih that person has been required by a notie under setion 63B(1); or has been given an opportunity in aordane with setion 63B(3), to deliver or make available for inspetion. (2) A person does not ommit an offene under subsetion (1) if that person ats () with the written permission of the Assessor; after the doument has been delivered or inspeted in aordane with setion 63B(1); or after a opy has been delivered in aordane with setion 63B(4) and the original has been inspeted. (3) A person guilty of an offene under subsetion (1) is liable on onvition on information, to ustody for a term not exeeding 2 years or to a fine or to both; on summary onvition, to a fine not exeeding 5, [Repealed] Spouses and ivil partners - separate treatment 308 (1) Inome tax shall be assessed and harged on, and payable by, spouses and ivil partners as separate individuals. 309 (2) All the provisions of the Inome Tax Ats, the Inome Tax (Instalment Payments) At 1974 and any publi doument made under those Ats shall, subjet to any order made under setion 65J, apply as if the spouses or ivil partners were separate individuals. 310 AT 3 of 1970 Page 97

98 Setion 65 Inome Tax At 1970 (3) Subsetion (2) shall not affet the operation of any provision referred to in that subsetion that expressly provides for irumstanes where individuals are married or ivil partners. 311 (4) This setion is subjet to setions 65A to 65J (eletion for joint treatment) A Eletion for joint treatment (1) If a valid eletion made in aordane with setion 65C ( a joint treatment eletion ) is in fore, the inome, dedutions and reliefs of spouses or ivil partners shall be aggregated for the purposes of the assessment, harge and payment of inome tax. 313 (2) If a joint treatment eletion is in fore, the spouses or ivil partners shall make, sign and deliver to the Assessor a joint return of their aggregated inome and laims for dedutions and reliefs, but subjet to subsetion (2A) (2A) If a joint return of the husband and wife s aggregated inome and laims for dedutions and reliefs is both ompleted and delivered eletronially, it need be authentiated by only one of them, but it shall be treated as if both had ompleted and delivered it. 316 (3) If a joint treatment eletion is in fore, the spouses or ivil partners shall, for the purposes of the Inome Tax Ats, together be treated as a single individual and shall be jointly and severally liable to pay inome tax in respet of the aggregated inome; and any penalty, interest or other amount falling to be paid by them under the Inome Tax Ats. 65B Conditions for joint treatment (1) An eletion will be valid in respet of a year of assessment only if one of the onditions set out in subsetion (2) is satisfied. (2) The onditions are that the spouses or ivil partners must (i) (ii) live together (within the meaning of setion 65E) for the whole of the year of assessment; and both be resident in the Island for the whole of the year; or must, if they both ommene residene in the Island during the year, (i) (ii) be married or ivil partners before the ommenement of residene in the Island; and 319 both be resident in the Island for the whole of the remainder of the year; and Page 98 AT 3 of 1970

99 Inome Tax At 1970 Setion 65 (iii) live together (within the meaning of setion 65E) for the whole of the remainder of the year C Eletions (1) An eletion shall be in writing and shall be made at suh time; and shall be in suh form; and () may require suh information; and (d) ontain suh statements, as may be presribed by regulations made by the Treasury. (2) Without prejudie to the generality of subsetion (1), an eletion shall be signed by both spouses or ivil partners; 322 () (d) (e) speify whih spouse s or ivil partner s name is to be used on heques (if any) if not issued in both spouses or ivil partners names and any suh heque shall be treated as payment of any amount due jointly to both the spouses or ivil partners; speify the spouse or ivil partner to whom orrespondene may be addressed if not addressed to both spouses or ivil partners and any orrespondene delivered to that spouse or ivil partner shall, for all purposes, be treated as delivered to both the spouses or ivil partners; 325 be suffiient authority for the Assessor or any offier of the Treasury who has any offiial duty under or in respet of the Inome Tax Ats to dislose douments and information relating to the inome, dedutions or reliefs laimed by one spouse or ivil partner to the other spouse or ivil partner; 326 speify that a return submitted under 65A(2) may be submitted eletronially by either spouse and that suh a return should be treated as a joint return signed and delivered by both the husband and the wife. 327 (3) Regulations under this setion shall not ome into operation unless they are approved by Tynwald D Jointly held property (1) If a joint treatment eletion is in fore, inome arising from property held in the names of spouses or ivil partners shall, for the purposes of inome tax, be regarded as inome to whih they are benefiially entitled in equal shares. 329 AT 3 of 1970 Page 99

100 Setion 65 Inome Tax At 1970 (2) Subsetion (1) shall not apply in respet of any suh inome if either of the spouses or ivil partners satisfies the Assessor that they are not benefiially entitled to suh inome in equal shares E Meaning of living together (1) For the purposes of, and subjet to the provisions of the Inome Tax Ats whih apply this setion, spouses or ivil partners shall be treated as living together unless they are separated under an order of a ourt of ompetent jurisdition, or by deed of separation; or they are in fat separated in suh irumstanes that the separation is likely to be permanent. 332 (2) Where a spouse or ivil partner is living with his or her spouse or ivil partner and either one of them is not or both of them are not, resident in the Island for a year of assessment, or both of them are resident in the Island for a year of assessment, but one of them is, and the other is not, absent from the Island throughout that year, the same onsequenes shall follow for inome tax purposes as would have followed if, throughout that year of assessment they had been in fat separated in suh irumstanes that the separation was likely to be permanent. 333 (3) Spouses and ivil partners shall not be treated as living together in respet of the year of assessment in whih they marry or form a ivil partnership; or 334 they ease to be treated as living together under subsetion (1). 335 (4) Subsetion (3) applies only in respet of a husband and wife who are resident in the Island when they marry, or ivil partners who are resident in the Island when they form a ivil partnership, and does not limit the operation of setion 65B(2) F Revoation of joint treatment eletion (1) This setion applies if, in respet of any year of assessment in respet of whih there is a joint treatment eletion in fore, a notie of revoation is served in aordane with this setion. (2) A joint treatment eletion may be revoked by either of the spouses or ivil partners. 338 Page 100 AT 3 of 1970

101 Inome Tax At 1970 Setion 65 (3) Notie of revoation shall be served on the Assessor in suh form as may be presribed by regulations made by the Treasury. (4) A revoation may be made under this setion in respet of the year of assessment in whih the revoation is served on the Assessor; or the year of assessment immediately preeding the year referred to in paragraph, in this setion eah of those years is referred to as the relevant year. (5) The joint treatment eletion shall not apply in respet of the relevant year and aordingly setion 65 shall apply in respet of that year and subsequent years as if there had been no joint treatment eletion. (6) Subjet to subsetions (7) and (8), any payment falling to be made under the Inome Tax Ats and made to the Assessor in respet of the relevant year shall, if made before the notie of revoation is served on the Assessor, be regarded as a payment to whih the spouses or ivil partners ontributed equally. 339 (7) But any dedution in respet of inome tax under the Inome Tax (Instalment Payments) At 1974; or Part 3 of the Inome Tax At 1989 (dedution of tax, et from payments to sub-ontrators), whih is made in respet of the relevant year shall, if made before the notie of revoation is served on the Assessor, be regarded as a dedution to whih the spouses or ivil partners did not ontribute equally. 340 (8) Subsetion (6) shall not apply in respet of any suh payment if the Assessor is satisfied that the spouses or ivil partners did not ontribute equally to the payment. 341 (9) Regulations under this setion shall not ome into operation unless they are approved by Tynwald G Cessation of joint treatment eletion (1) This setion applies if, during any year of assessment ( the relevant year ) in respet of whih there is a joint treatment eletion in fore spouses or ivil partners ease to be treated as living together under setion 65E(1); 343 one spouse or ivil partner eases to be resident in the Island and the Assessor is satisfied that the irumstanes are suh that the essation is likely to be permanent; or 344 () one spouse or ivil partner dies. 345 AT 3 of 1970 Page 101

102 Setion 65 Inome Tax At 1970 (2) The joint treatment eletion shall not apply in respet of the relevant year and aordingly setion 65 shall apply in respet of that year as if there had been no joint treatment eletion. (3) Subjet to subsetions (4) and (5), any payment falling to be made under the Inome Tax Ats and made to the Assessor in respet of the relevant year shall, if made before the relevant event referred to in subsetion (1) to (), be regarded as a payment to whih the spouses or ivil partners ontributed equally. 346 (4) But any dedution in respet of inome tax under the Inome Tax (Instalment Payments) At 1974; or Part 3 of the Inome Tax At 1989 (dedution of tax, et from payments to sub-ontrators), whih is made in respet of the relevant year shall, if made before the relevant event referred to in subsetion (1) to (), be regarded as a dedution to whih the spouses or ivil partners did not ontribute equally. 347 (5) Subsetion (3) shall not apply in respet of any suh payment if the Assessor is satisfied that the spouses or ivil partners did not ontribute equally to the payment H Transfer of unused allowanes, et in year of death (1) This setion applies where setion 65G applies by virtue of setion 65G(1)(). (2) If the allowanes to whih the deeased spouse or ivil partner was entitled to under setions 31A(1)(i), 35, 35A, 35B, 43B and 44A of this At exeed the total inome of that spouse or ivil partner in respet of the year of assessment in whih he or she died, the surviving spouse or ivil partner shall be entitled to a dedution from his or her total inome for that year of an amount equal to the exess. 350 (3) If the dedutions to whih the deeased spouse or ivil partner was entitled to under setions 31A(1)(ii), 39AA, 48C and 61E of this At exeed the inome tax liability of that spouse or ivil partner in respet of the year of assessment in whih he or she died, the surviving spouse or ivil partner shall be entitled to a dedution from his or her inome tax liability for that year of an amount equal to the exess. 351 (4) No dedution under subsetion (3) shall of itself entitle the survivor to a refund or repayment of tax Page 102 AT 3 of 1970

103 Inome Tax At 1970 Setion 65 65I Transfer of unused allowanes in year of marriage or formation of ivil partnership 354 (1) This setion applies where during any year of assessment ( the relevant year ) () persons are married or form a ivil partnership and begin to live together (within the meaning of setion 65E); and 355 ontinue to live together for the whole of the relevant year; and have made a joint treatment eletion in aordane with setion 65C in respet of the next following year of assessment. (2) Subjet to subsetion (3), during the relevant year inome tax will ontinue to be assessed and harged on, and payable by, the persons making the eletion in aordane with setion (3) If the allowanes to whih one individual was entitled to under setions 31A(1)(i), 35, 35A, 35B, 43B and 44A of this At exeed the total inome of that individual in respet of the relevant year, the other individual shall be entitled to a dedution from his or her total inome in respet of the relevant year of an amount equal to the exess. 357 (4) If the dedutions to whih one individual was entitled to under setions 31A(1)(ii), 39AA, 48C and 61E of this At exeed the inome tax liability of that individual in respet of the relevant year, the other individual shall be entitled to a dedution from his or her inome tax liability in respet of the relevant year of an amount equal to the exess. 358 (5) No dedution under subsetion (4) shall of itself entitle the other individual to a refund or repayment of tax. 65J Supplementary provisions (1) The Treasury may by order make suh provision as seems neessary or expedient to give effet to the purposes of setions 65 to 65I; modify the provisions of the enatments referred to in setion 65(2) in their appliation to irumstanes affeted by setions 65 to 65I or an order under paragraph. (2) An order under subsetion (1) may be made retrospetive and shall be deemed to have had effet in respet of suh inome tax year (not being a year ommening before the 6th April in the year in whih the order is made) as may be speified in the order. (3) An order under subsetion (1) shall not ome into operation unless it has been approved by Tynwald. 361 AT 3 of 1970 Page 103

104 Setion 66 Inome Tax At 1970 A66 Corporate taxpayers: returns (1) Every orporate taxpayer shall on or before the due day make and deliver to the Assessor a true and orret return of that taxpayer s whole inome for eah aounting period. (2) A return shall () give partiulars of the items and soures of the orporate taxpayer s inome; and speify the items of inome in respet of whih inome tax is payable by law elsewhere, and the rate and amount of suh inome tax in the presribed form; and the partiulars as to the amount of suh inome distributed by way of dividend and the amount otherwise applied. (3) In this setion the due day is the day following the expiry of 12 months from the end of every aounting period, or suh later date as the Treasury may by order determine. (4) Every return for an aounting period must inlude a omputation of the amount of tax whih is payable by the orporate taxpayer for that period on the basis of the information ontained in the return; and taking into aount any relief, dedution or allowane for whih a laim is inluded in the return or whih is required to be given in relation to that aounting period. (5) Every orporate taxpayer shall be supplied by the Assessor, on request, with a opy of the appropriate form on whih the return is to be made, either by prepaid post or otherwise. (6) The Assessor may require any orporate taxpayer liable to deliver a tax return to inlude in their return suh additional information as the Assessor reasonably requires. Suh additional information inludes details of the members of the orporate taxpayer, loan aount summaries, details of distributions made and finanial aounts or aounting reords Returns in respet of ompanies [1946/48; 1946/20(2)] (1) A return in respet of the inome of any assoiation shall be made and delivered as required by this At by the president, managing diretor, manager, treasurer or seretary of suh assoiation, or other offier (by whatever name alled) performing the duties of manager, and he shall be liable to pay inome tax in respet of the inome of suh assoiation, but Page 104 AT 3 of 1970

105 Inome Tax At 1970 Setion 67 suh liability shall not affet the ultimate liability of suh assoiation to pay the same: Provided that no person shall be onvited under setion one hundred and eight of this At of failing or refusing to deliver a return, if it is proved to the satisfation of the Court that any other person required by this setion to make and deliver suh return has duly made and delivered the same or has been onvited of the same offene: Provided also that the payment of inome tax by any suh offier in respet of the inome of any suh assoiation shall onstitute a preferene laim, ranking immediately after laims of the Crown, in favour of suh offier against any property of suh assoiation for the amount so paid. (2) lf more than one return is delivered under this setion, the return showing the highest amount of inome shall be deemed to be the return made on behalf of the assoiation. (3) The Assessor shall be entitled by notie to require any assoiation or any diretor or offier thereof, to make, within fourteen days of the date of the servie, a return showing the total inome from all soures, and the expenses of the assoiation, the names and addresses of the shareholders, stokholders, debenture holders, members or assoiates, or bond holders, with the amount of their respetive holdings and the sums paid to them in respet thereof by way of dividend, bonus, interest, or share of profit, and any person failing to make suh return shall be guilty of an offene against this At Information to be given by employers [1946/42] (1) Every employer, when required to do so by notie from the Assessor in the presribed form, shall, within the time limited in the notie, whih shall not be less than four days from the date of the servie of the notie, make and deliver to the Assessor a written statement signed by him of the names and plaes of abode of any persons employed by him to whom this provision applies, and of the payments made to those persons in respet of that employment. (2) The provisions of the last foregoing subsetion apply to all persons employed by an employer, exept persons who are not employed in any other employment and whose remuneration in the employment for the year does not amount to one hundred and thirty five pounds. (3) Where the employer is a body of persons orporate or uninorporate, the manager of the body or other offier (by whatever name alled) performing the duties of manager, shall be deemed to be the employer for the purposes of this setion, and any diretor of a ompany, or person engaged in the management of a ompany, shall be deemed to be a person employed. AT 3 of 1970 Page 105

106 Setion 68 Inome Tax At Return by attorneys, agents and guardians [1946/44] (1) Every person out of the Isle of Man shall ause a return of the whole of his inome, whether hargeable with inome tax in the Isle of Man or not, to be made and delivered by his attorney or agent in the Isle of Man and suh attorney or agent shall be liable to pay inome tax found to be due in respet of suh inome of his prinipal; in default of a return by suh attorney or agent, the Assessor may make an assessment of the inome of suh person as in setion eighty-six of this At, and suh attorney or agent shall be liable to pay the inome tax assessed. (2) The attorney or agent of any person in the Isle of Man liable to pay inome tax may on behalf of suh person make and deliver a return as required by this At, and he shall be liable to pay inome tax in respet of the inome of suh person: Provided that the Assessor shall have power in any ase to refuse to aept suh a return by an attorney or agent and to all upon suh person aforesaid to make and deliver his own return and suh person shall make and deliver a return as aforesaid to the Assessor within seven days after the servie on him of a notie from the Assessor alling upon him to deliver a return. (3) The guardian of any minor shall make and deliver a return as required by this At on behalf of the person of whom he is the guardian, and he shall be liable to pay inome tax in respet of the inome of suh person. (4) The payment of inome tax by any suh attorney, agent, or guardian in respet of the inome of any other person shall onstitute a preferene laim, ranking immediately after laims of the Crown, in favour of suh attorney, agent, or guardian, against any property of suh other person for the amount so paid. (5) The liability of suh attorney, agent, or guardian for the payment of inome tax shall not affet the ultimate liability of suh other person for the payment of the same. 69 Prinipal and agent to be named in assessment [1946/49] Where an assessment is made of the inome of any person on a return made by some other person on behalf of suh first-mentioned person, the assessment shall be made and entered in the assessment list in the name of the person making suh return, and also in the name of the first-mentioned person; and suh person making the return shall be liable to pay the inome tax so assessed. Page 106 AT 3 of 1970

107 Inome Tax At 1970 Setion Chargeability of agent of non-resident person [1946/50] A person not resident in the Isle of Man (hereinafter in this setion referred to as a non-resident person ), whether a British subjet or not, shall be assessable and hargeable in the name of his trustee, guardian, or ommittee, or of any attorney, agent, reeiver, branh or manager, whether suh attorney, agent, reeiver, branh or manager has the reeipt of the inome or not in like manner and to the like amount as suh non-resident person would be assessed and harged if he were resident in the Isle of Man and in the atual reeipt of suh inome. A non-resident person shall be assessable and hargeable in respet of any inome arising, whether diretly or indiretly, through or from any attorneyship, ageny, reeivership, branh or management, and shall be so assessable and hargeable in the name of the attorney, agent, reeiver, branh or manager. (1) Where a non-resident person, not being a British subjet or a firm or ompany whose prinipal plae of business is situated in Her Majesty s dominions or in territory under Her Majesty s protetion or a branh thereof arries on business with a resident person and it appears to the Assessor that owing to the lose onnetion between the resident person and the non-resident person and to the substantial ontrol exerised by the non-resident person over the resident person the ourse of business between those persons an be so arranged and is so arranged that the business done by the resident person in pursuane of his onnetion with the non-resident person produes to the resident person either no profit or less than the ordinary profits whih might be expeted to arise from suh business, the non-resident person shall be assessable and hargeable to tax in the name of the resident person as if the resident person were an agent of the non-resident person. (2) Where it appears to the Assessor or to the Commissioners or to the Staff of Government Division that the true amount of the gains or profits of any non-resident person hargeable with tax in the name of the resident person annot in any ase be readily asertained, the Assessor or Commissioners or the Staff of Government Division may, if he or they think fit, assess and harge the non-resident person on a fair and reasonable perentage of the turnover of the business done by the nonresident person through or with the resident person in whose name he is hargeable as aforesaid, and, in suh ase the provisions of the Inome Tax Ats relating to the delivery of the return or partiulars by persons ating on behalf of others shall extend so as to require returns or partiulars to be furnished by the resident person of the business so done by the non-resident person through or with the resident person, in the same manner as returns or partiulars are to be delivered by persons ating for inapaitated or non-resident persons of inome to be harged: AT 3 of 1970 Page 107

108 Setion 70 Inome Tax At 1970 Provided that the amount of the perentage shall in eah ase be determined having regard to the nature of the business and shall when determined by the Assessor, be subjet to an appeal to the Commissioners and the determination of the Commissioners shall be subjet to appeal to the Staff of Government Division, as provided in setion ninety of this At. (3) Nothing in this setion shall render a non-resident person hargeable in the name of a broker or general ommission agent or other agent where suh broker, general ommission agent, or agent is not an authorised person arrying on the regular ageny of the non-resident person or person hargeable, as if he were an agent in pursuane of subsetions (2) and (3) of this setion in respet of gains or profits arising from sales or transations arried out through suh a broker or agent. (4) The fat that a non-resident person exeutes sales or arries out transations with other non-residents in irumstanes whih would make him hargeable in pursuane of subsetions (2) and (3) of this setion in the name of the resident person shall not of itself make him hargeable in respet of gains or profits arising from those sales or transations. (5) Where a non-resident person is hargeable to tax in the name of any attorney, agent, reeiver, branh or manager in respet of any gains or profits arising from the sale of goods or produe manufatured or produed out of the Isle of Man by the non-resident person, the person in whose name the non-resident person is so hargeable may if he thinks fit apply to the Assessor, or in the ase of an appeal to the Commissioners or the Staff of Government Division, to have the assessment to tax in respet of those gains or profits made or amended on the basis of the profits whih might reasonably be expeted to have been earned by a merhant, or where goods are retailed by or on behalf of the manufaturer or produer by a retailer of the goods sold who had bought from the manufaturer or produer diret, and on proof to the satisfation of the Assessor or the Commissioners or the Staff of Government Division the amount of the profits on the basis aforesaid, the assessment shall be made or amended aordingly. Assessment where several agents at [1946/77] (6) Where any profession, trade, employment, or voation is arried on in the Isle of Man by any person not ordinarily resident in the Isle of Man, at more than one plae of business, or by more than one agent or representative, the assessment in respet of profits of suh person liable to Manx inome tax may be made, and all the noties required by the Inome Tax Ats to be given may be made at or upon one of suh plaes of business or one of suh agents or representatives, and suh agent or Page 108 AT 3 of 1970

109 Inome Tax At 1970 Setion 71 representative shall be liable in respet of the assessment upon the whole of the profession, trade, employment, or voation arried on by suh person in the Isle of Man as if he were the sole agent or representative of suh person. 71 Requisition on persons to dedut tax from payments to non-residents (1) The Assessor may, by notie in writing, require a person who makes any taxable payment to another person who is resident out of the Isle of Man, to pay Manx inome tax in respet of that payment for the year in whih the payment is made, at suh rate in the pound as the Assessor may determine to be the appropriate rate of tax payable by that other person and suh inome tax shall be payable aordingly and shall be a debt due by the person making the payment in all respets as inome tax due under the Inome Tax Ats. (2) Any inome tax so paid by a person under subsetion (1) above, shall be deemed to be paid on behalf of the person to whom the taxable payment is made and may be deduted therefrom, and the person making the payment shall give a ertifiate in suh form as the Assessor may approve of suh dedution to the person to whom the taxable payment is made. (3) Any person who has had inome tax deduted under this setion may, within 3 years after suh dedution, apply to the Assessor to have his liability to inome tax adjusted and the amount payable orreted, and on satisfying the Assessor as to the proper amount payable having regard to the total inome of that person and the allowanes to whih that person may be entitled, the Assessor shall ertify to the Treasury the amount of refund due to that person, and that amount shall be paid to that person by the Treasury. (4) In this setion, taxable payment means any payment or redit speified in a notie given by the Assessor under subsetion (1) above, and on whih inome tax is assessable and hargeable under the Inome Tax Ats. 365 (5) A notie given by the assessor under this setion shall have the same effet as an assessment made upon the person to whom suh notie has been given. (6) Without prejudie to setion 73, where inome tax has been or should be deduted under this setion, that inome tax shall be aounted for and paid over to the Assessor within 14 days of suh dedution or the date on whih suh dedution should have been made. AT 3 of 1970 Page 109

110 Setion 72 Inome Tax At [Repealed] Tax deduted based on inome of urrent year Notwithstanding anything ontained in this At, where for any year of assessment inome tax has been or should be deduted under the provisions of setion 71 from any taxable payment to a person not resident in the Isle of Man, the amount of suh inome to be inluded in any return or assessment for inome tax purposes for that year of assessment shall be the amount of suh inome payable within the year of assessment, less, in the ase of rents, the allowanes under setions 58 and Individual remains liable until tax is paid [1946/54] Nothing in this At ontained shall be taken to relieve any person from any tax due or payable unless and until suh tax has been paid on behalf of suh person. 75 Dedution of tax from payments to non-residents [1946/55] (1) Any person paying Manx inome tax on behalf of a person resident out of the Isle of Man shall be entitled to reover from the person on whose behalf suh tax shall be paid, or to retain out of any moneys due to suh person, so muh as shall be required to indemnify him in respet of suh payment. (2) The person on whose behalf suh tax is paid shall allow suh dedution as provided in this At, and the person making suh dedution shall be aquitted and disharged of so muh money as is represented by suh dedution as if that sum had been atually paid. 76 Delivery of lists by persons reeiving inome for other persons [1946/57] (1) Every person who, in whatever apaity, is in reeipt of any money or value, or of profits or gains from any of the soures mentioned in the Inome Tax Ats, of or belonging to any other person who is hargeable in respet thereof, or who would be so hargeable if he were resident in the Isle of Man, and not an inapaitated person, shall, whenever required to do so by any general or partiular notie by the Assessor, prepare and deliver, within the period mentioned in suh notie, a list in the presribed form, signed by him, ontaining a true and orret statement of all suh money, value, profits or gains; the name and address of every person to whom the same shall belong; Page 110 AT 3 of 1970

111 Inome Tax At 1970 Setion 77 () a delaration whether every suh person is (i) (ii) of full age; resident in the Isle of Man; (iii) an inapaitated person. 370 (2) If any person above desribed is ating jointly with any other person, he shall, in like manner, deliver a list of the names and addresses of all persons joined with him at the time of delivery of the list mentioned in the last preeding subsetion. A trustee who has authorised the reeipt of profits arising from trust property by the person entitled thereto, or by the agent of suh person, if that person or agent shall atually reeive the same under that authority; or an agent or reeiver of any person resident in the Isle of Man, other than an inapaitated person, shall not, if he returns a list, as required by this setion, of the name, address, and profits of that person, be required to do any other at for the purpose of the assessment of that person, unless the Assessor requires the testimony of the trustee, agent, or reeiver, as the ase may be, in pursuane of the provisions of the Inome Tax Ats. 77 Default of agent is default of prinipal [1946/58] Where any person who is required by this At to make and deliver a return on behalf of some other person fails to do so, then suh other person and suh first mentioned person may be assessed in like manner as any person making default in delivering a return is liable to be assessed under setion eighty-six of this At. 78 Partiulars of taxable payments (1) The Assessor may, by notie in writing, require a person who makes any taxable payment to another person to furnish in writing to the Assessor a statement giving partiulars of suh payments, the persons to whom made, and the obligation in respet of whih the same is paid or redited. (2) In this setion, taxable payment means any payment or redit speified in a notie given by the Assessor under subsetion (1) and whih (in whole or in part) an be taken into aount in the assessment of inome tax under the Inome Tax Ats Returns for persons dying during year of assessment [1946/60] (1) Where any person liable to pay inome tax for any year of assessment shall die before delivering a return for that year, his exeutors or administrators, or the persons who shall have taken possession of his AT 3 of 1970 Page 111

112 Setion 80 Inome Tax At 1970 property shall make and deliver the return whih the deeased person was liable to make, or whih, if he had lived, he would have been liable to make. (2) Any inome tax due and unpaid by a person who shall have died shall be payable out of his estate and be a first harge upon the estate of suh deeased person, and his exeutors or administrators or the persons who shall have taken possession of his property shall pay any suh tax out of any assets of suh deeased person oming into their hands and for suh payment they are hereby indemnified. 80 Assistane by rate olletors [1946/67] Every rate olletor and offier of the Assessment Board and offier of any loal government body and any other person employed in the assessment of property for rating purposes, shall render suh assistane and give suh information to the Assessor as may be within his knowledge, arising out of his said work and position, and shall, when so required, furnish the Assessor with the names and addresses of the owners and oupiers of property within his distrit, and shall, at suh time and plae as the Assessor may fix, produe his books, lists and returns to the Assessor or suh other person as the Assessor may designate, and every person so doing shall be paid for his servie suh sum as the Treasury may determine A Duty to preserve reords (1) A person who makes and delivers a return in ompliane with setion 62, 62A, 63, 63A, 66, A66, 68 or 79 must, in aordane with this setion, preserve suh reords as were needed to enable that person to deliver the return; or is required to make and deliver a return in ompliane with setion 62, 62A, 63, 63A, 66, A66, 68 or 79 but has not done so, must, in aordane with this setion, preserve suh reords as are needed to enable that person to deliver the return. (2) The reords must be preserved in the ase of a orporate taxpayer, for 4 years from the end of the relevant aounting period or, if later, 4 years after the delivery of the return in aordane with the relevant setion; in the ase of a non-orporate taxpayer who arries on a trade, profession or business or who reeives inome arising from the rents of land (within the meaning of setion 58(3)), 6 years from the end of the relevant year of assessment or, if later, 6 years after the delivery of the return in aordane with the relevant setion; Page 112 AT 3 of 1970

113 Inome Tax At 1970 Setion 81 () in the ase of other non-orporate taxpayers, 2 years from the end of the relevant year of assessment or, if later, 2 years after the delivery of the return in aordane with the relevant setion. (3) The reords required to be preserved under this setion are all suh reords and supporting douments as may be neessary for making a true, orret and omplete return and inlude reords of all reeipts and expenses in the ourse of a orporate taxpayer s ativities, and the matters in respet of whih the reeipts and expenses arise; and in the ase of a trade involving dealing in goods, all sales and purhases made in the ourse of the trade. (4) In subsetion (3), supporting douments inludes aounts, books, deeds, ontrats, vouhers and reeipts. (5) The duty under this setion to preserve reords may be satisfied by the preservation of the information ontained in them if the Assessor is satisfied that any fats whih the Assessor reasonably require to be proved, and whih would have been proved by the reords, are proved by other doumentary evidene furnished to the Assessor. (6) Where information is so preserved a opy of any doument forming part of the reords is admissible in evidene in any proeedings to the same extent as the reords themselves. (7) Any person who fails to omply with subsetion (1) is guilty of an offene and is liable on summary onvition to a fine not exeeding 10, Assessment of inome 81 Basis of assessment, et for orporate taxpayers (1) Inome tax shall, in aordane with this At, be assessed and harged on the inome of orporate taxpayers reeived or arued in any year of assessment but assessments to inome tax will be made on orporate taxpayers by referene to aounting periods. (2) The amount of inome tax hargeable on a orporate taxpayer (after making all proper dedutions) on inome reeived or arued in an aounting period will, where neessary, be apportioned between the years of assessment in whih the aounting period falls. (3) In any year of assessment, assessments for aounting periods of a orporate taxpayer falling wholly or partly in that year or in the preeding year may, although inome tax has not at the time been harged for the year in question, harge tax for so muh of the period as falls within that year aording to the rate of tax last determined. AT 3 of 1970 Page 113

114 Setion 82 Inome Tax At 1970 (4) Where any harge under subsetion (3) is subjet to later neessary adjustment it may be by disharge or repayment of tax or by further assessment. (5) If the Treasury makes an order determining the rate of inome tax in respet of orporate taxpayers for any year of assessment, any subsequent assessment to tax made under this setion may be made in aordane with the order A Assessment of inome tax: non-orporate taxpayers Subjet to setion 2C of this At, the Assessor shall, in respet of eah year of assessment assess the inome of every non-orporate taxpayer hargeable with inome tax on the amount of inome reeived or arued in that year or in any part of that year B Aounting periods for trading profits (1) The Treasury may make regulations to provide for the trading profits of a non-orporate taxpayer to be assessed by referene to the aounting period relating to suh trade. (2) Without prejudie to the generality of the power in subsetion (1), regulations may inlude provision () (d) for the determination of the beginning and the end of aounting periods; for the treatment to be applied to the ommenement or essation of the trade; for irumstanes where more than one trade is arried on by a non-orporate taxpayer, eah with a different aounting period; for the treatment to be applied to inome or losses not otherwise falling within an aounting period. (3) Regulations under this setion shall be laid before Tynwald as soon as pratiable after they are made, and if Tynwald at the sitting at whih the regulations are laid or at the next following sitting resolves that they shall be annulled, they shall ease to have effet Assessment list [1946/66] The Assessor shall prepare in every year in whih inome tax is payable, in the manner hereinafter in this At provided, an inome tax assessment list (hereinafter in this At alled the assessment list ), showing the amount at whih the inome of eah person has been assessed and the names and addresses of suh persons. Page 114 AT 3 of 1970

115 Inome Tax At 1970 Setion Assessment on aepted returns [1946/68] If the Assessor is satisfied that any return is a true and orret return, he shall assess the inome of the person whose inome is shown in suh return at the amount so shown. 83A Current year assessments [P1988/39/119] (1) Where inome tax is harged for a year of assessment in respet of inome arising in that year, the Assessor may make an assessment during that year to the best of his judgement, by referene to atual inome or estimated inome (whether from any partiular soure or generally) or partly by referene to one and partly by referene to the other. (2) Where an assessment is made by virtue of subsetion (1), any neessary adjustments shall be made after the end of the tax year (whether by way of assessment, repayment of tax or otherwise) to seure that tax is harged in respet of inome atually arising in the year. 377 A84 Enquiries into returns: orporate taxpayers (1) In respet of a return of a orporate taxpayer, the Assessor may enquire into the return and exerise the powers onferred by setion 84 if the Assessor gives written notie of enquiry to the orporate taxpayer within the time allowed. (2) In this setion, the time allowed is the period of 12 months starting from the date on whih the return is delivered to the Assessor; the date on whih a notie of amendment is given under subsetion (4), whihever is the later. (3) An enquiry under this setion may be undertaken and the powers onferred by setion 84 may be exerised in respet of a orporate taxpayer at any time after the notie of enquiry has been given. (4) A orporate taxpayer may amend its tax return by giving written notie to the Assessor within the time allowed and the notie must ontain suh information and be aompanied by suh statements and douments as the Assessor may require. 378 B84 Verifiation of returns: general powers (1) The Assessor may require any person to produe suh information or douments AT 3 of 1970 Page 115

116 Setion 84 Inome Tax At 1970 () (d) (e) in support of a return or anything ontained in a return; about things that the Assessor believes should be inluded in the return; about tax payable by, or any liability to tax on the part of, the orporate taxpayer for other aounting periods; about tax payable by, or any liability to tax on the part of, other orporate taxpayers for any aounting periods; about laims, reliefs or eletions, as the Assessor may require. (2) If the Assessor is not satisfied with the return made by any person, or a person fails to produe the information or douments required, or the Assessor is not satisfied with anything that has been furnished, the Assessor shall make an assessment on the person onerned in suh sum as, aording to the best of the Assessor s judgment, ought to be harged on that person. (3) This setion is subjet to setion 84A and does not affet any other powers in the Inome Tax Ats for the prodution of information or douments. (4) Where any person is required to produe information or douments to the Assessor under this setion, that person shall be guilty of an offene if that person fails without reasonable ause to omply with the requirement; or in produing the information whih is required (i) (ii) makes any statement knowing it to be false in a material partiular; or reklessly makes any statement whih is false in a material partiular; () in produing a doument whih is required (i) (ii) produes a doument knowing it to be false in a material partiular; or reklessly produes a doument whih is false in a material partiular. (5) A person guilty of an offene under this setion shall be liable on summary onvition to ustody for a term not exeeding 6 months or to a fine not exeeding 5,000 or to both Verifiation of returns [1946/69] (1) The Assessor may require any person to appear before him to verify on oath the statements ontained in his return or to produe suh oral and Page 116 AT 3 of 1970

117 Inome Tax At 1970 Setion 84 doumentary evidene in support of his return for the information of the Assessor as the Assessor may require. Assessment where return not aepted (2) If the Assessor is not satisfied with the return made by any person, or the person fails to appear before him, or fails to produe the evidene required, or the Assessor is not satisfied with the evidene whih has been furnished, the Assessor shall make an assessment on the person onerned in suh sum as, aording to the best of his judgment, ought to be harged on him. (3) The Assessor is hereby empowered to administer oaths for the purposes of this setion. 84A Additional assessments [P1970/9/29(3)] (1) If the Assessor disovers () that any inome whih ought to have been assessed to tax has not been assessed; or that any assessment to tax is or has beome insuffiient; or that any relief whih has been given is or has beome exessive, the Assessor may make an additional assessment in the amount, or the further amount, whih ought in his opinion to be harged. (2) Subjet to subsetion (3) below, an additional assessment may be made under subsetion (1) above at any time in the ase of a orporate taxpayer, not later than 4 years after the end of the aounting period or, as the ase may be, the aounting period to whih the assessment relates; or in the ase of a non-orporate taxpayer, not later than 6 years after the end of the year of assessment to whih the assessment relates. 380 (3) Where any form of dishonesty or negligene has been ommitted by or on behalf of any person in onnetion with or in relation to tax, assessments on that person to tax may be made in the ase of a orporate taxpayer, at any time not later than 12 years after the end of the aounting period to whih the assessment relates; or in the ase of a non-orporate taxpayer, at any time AT 3 of 1970 Page 117

118 Setion 85 Inome Tax At Notie of assessment [1946/70] It shall be the duty of the Assessor to send to eah person liable to pay inome tax a statement showing the amount of inome in respet of whih inome tax is payable, the allowanes and dedutions made to suh person, and the rate and the amount of inome tax payable, and the date as on whih suh tax beame due and payable. 86 Assessment in default (1) Where for any year a return in respet of the inome of any person required by this At to make and deliver a return, has not been made and delivered by suh person, or any person on his behalf, within the time limited by or under the provisions of this At, the Assessor may make an assessment (in this setion referred to as an assessment in default ) to the best of his judgment of the inome of suh first mentioned person for the year preeding the year in respet of whih the default was made; or if appropriate, the year of assessment in respet of whih the default was made. (2) Any person who is assessed under subsetion (1) above may within 6 years from the end of the year of assessment in respet of whih the assessment in default was made make and deliver the return of his inome for the year in respet of whih the assessment in default was made. 383 (3) to (5) [Repealed] 384 (6) Subjet to the following provisions of this setion, an assessment under subsetion (1) shall be treated by the Assessor as being final and onlusive and he shall enter suh assessment in the assessment list or supplementary list, as the ase may require, and payment of inome tax shall be made on suh assessment. 385 (7) Where a return of inome is made and delivered within the extension of time granted under this setion, the inome of the taxpayer shall be assessed thereon in aordane with this At and the assessment under subsetion (1) above whih it replaes shall ease to have effet. 386 (8) An assessment under subsetion (7) above shall be deemed to have beome due and payable on the same date as the assessment under subsetion (1) above whih it replaes. 387 (8A) Where a taxpayer has paid more in respet of an assessment under subsetion (1) above than is payable under the assessment under subsetion (7) above whih replaes it, the Assessor shall, after taking Page 118 AT 3 of 1970

119 Inome Tax At 1970 Setion 86 aount of suh interest as may be due under setion 111A of this At, repay the differene to the taxpayer. 388 (9) Nothing in this setion shall be onstrued so as to affet the duty of any person to make and deliver a return in the time and manner required by any other provision of this At. (10) This setion does not apply in respet of orporate taxpayers A Assessment in default: orporate taxpayers (1) Where for any aounting period a return in respet of the inome of any orporate taxpayer has not been filed within the time limited by or under the provisions of this At, the Assessor may make an assessment (in this setion referred to as an assessment in default ) to the best of the Assessor s judgment of the inome of the orporate taxpayer for the aounting period in respet of whih the default was made. (2) Any orporate taxpayer who is assessed under subsetion (1) may, within 4 years from the end of the aounting period in respet of whih the assessment in default was made, file the return of inome for the period in respet of whih the assessment in default was made. 391 (3) Subjet to the following provisions of this setion, an assessment under subsetion (1) shall be treated by the Assessor as being final and onlusive and suh assessment shall be entered in the assessment list or supplementary list, as the ase may require, and payment of inome tax shall be made on suh assessment. (4) Where a return of inome is made and delivered within the extension of time granted under this setion, the inome of the orporate taxpayer shall be assessed thereon in aordane with this At and the assessment under subsetion (1) whih it replaes shall ease to have effet. (5) An assessment under subsetion (1) or (4) shall be deemed to have beome due and payable on the date on whih inome tax should have been paid under setion 96 of this At. (6) Where a orporate taxpayer has paid more in respet of an assessment under subsetion (1) than is payable under the assessment under subsetion (4) whih replaes it, the Assessor shall, after taking aount of suh assessments to inome tax or any other amounts that are due and payable by the taxpayer under the Inome Tax Ats, repay the differene to the orporate taxpayer. (7) Nothing in this setion shall be onstrued so as to affet the duty of any person to make and deliver a return in the time and manner required by any other provision of this At. 392 AT 3 of 1970 Page 119

120 Setion 87 Inome Tax At Aggrieved person may ontest assessment [1958/3] (1) A person aggrieved by any assessment (other than an assessment in default under setion 86 of this At) upon him by the Assessor may ontest the assessment by notie in writing delivered to the Assessor within thirty days after the date of the servie of the notie of assessment, stating the grounds of his objetion. 393 (2) If it is shown to the satisfation of the Chairman of the Commissioners that owing to absene, sikness, or other reasonable ause any person has been prevented from giving notie ontesting the assessment within the time limited as aforesaid, the Chairman of the Commissioners shall have power to extend the time appointed by the last foregoing subsetion upon suh terms as the justie of the ase may require, and any suh extension may be ordered although the appliation for the same is not made until after the expiration of the time appointed. (3) If notie is not given within the time limited, or extended by the Chairman of the Commissioners, the assessment shall beome final and onlusive. (4) The Assessor shall be entitled to adjust an assessment by agreement with the person assessed without the neessity of formal appeal. Notie to Commissioners [1946/69(5)] (5) If an assessment is ontested and is not adjusted by agreement, the Assessor shall give notie thereof to the Commissioners; and if the Assessor shall fail to give suh notie the person ontesting, or his representative, shall give it, and the Commissioners shall have power to determine suh assessment, subjet to appeal under setion ninety of this At to the Staff of Government Division. 88 Inome Tax Commissioners [1946/72 amended by 1960/3] (1) There shall ontinue to be a tribunal alled the Isle of Man Inome Tax Commissioners (in this At referred to as the Commissioners ). 394 (2) The Commissioners shall onsist of a hairman and eight other ommissioners appointed in aordane with the Tribunals At (3) No person who is an offier, or in the preeding 3 years has been an offier, of any Department dealing with inome tax shall be eligible to be a member of the Commissioners. 396 (4) Every member of the Commissioners shall, before ating in the duties of his offie, take before a Deemster a delaration in the form set out in the Seond Shedule. 397 Page 120 AT 3 of 1970

121 Inome Tax At 1970 Setion 88 (5) and (6)[Repealed] 398 (7) A Commissioner shall ontinue to at until his suessor is appointed. (8) and (9) [Repealed] 399 (10) The Commissioners shall keep Minutes of their proeedings and any Minute made of proeedings at sittings of the Commissioners, if signed by the Chairman of the Commissioners or by any person purporting to be the Chairman, either at the sitting of the Commissioners at whih suh proeedings took plae or at the next ensuing sitting of the Commissioners, shall be reeivable in evidene in all legal proeedings, without further proof; and, until the ontrary is proved, every sitting of the Commissioners in respet of the proeedings of whih minutes have been so made shall be deemed to have been duly onvened and held. (11) The Commissioners shall meet from time to time for the dispath of business. 400 (12) If and when any Deemster who is assigned to hold the offie of Chairman is temporarily unable to attend, or if there is a vaany in the offie of Chairman, the Counil of Ministers may nominate any other Deemster to sit as temporary Chairman, and the Deemster so nominated shall, for the purpose of any ase whih he may hear, until the final determination thereof, have the same jurisdition and powers as if he were assigned as Chairman; 401 [Repealed] 402 (13) Not less than three Commissioners shall attend at the hearing of any ase. (14) The opinion of the Chairman upon any question whih in the opinion of the Commissioners is a question of law, shall prevail. (15) Save as provided by this At, an order or proeeding of the Commissioners shall not be questioned or reviewed, and shall not be restrained or removed by petition of doleane, injuntion or otherwise, either at the instane of the Crown or otherwise. 403 (16) Save as aforesaid every question shall be deided by a majority of votes of the Commissioners present and voting on that question. (17) The names of the Commissioners present at eah sitting of the Commissioners shall be reorded in the minutes of the sitting. (18) For the purposes of this setion a ase means any objetion to an assessment whih has not been disposed of by agreement, and whih has been notified to the Commissioners under the provisions of subsetion (5) of setion eighty-seven of this At. (19) [Repealed] 404 AT 3 of 1970 Page 121

122 Setion 89 Inome Tax At 1970 (20) For the purpose of settling objetions to assessments whih have not been disposed of by agreement, the Commissioners shall sit at suh time and plae in the town of Douglas or elsewhere as they shall think fit. The Commissioners shall sit in Chambers. (21) The Commissioners shall give fourteen days notie of the time and plae of suh sitting in the presribed form to the persons whose objetions are to be heard. (22) The Commissioners may adjourn a sitting from day to day or to any day or plae as they shall think fit; and, exept in the ase of adjournment from day to day, the Commissioners shall give notie in writing of the time and plae of every adjourned sitting to the persons whose objetions will be onsidered at suh sitting. (23) Commissioners who have given their onsent under setion 105E(8) in respet of a partiular taxpayer shall be disqualified for appointment to hear an appeal by that taxpayer against any assessment or matter that arises out of the irumstanes to whih that onsent applied Proedure at sittings of Commissioners [1946/73] (1) At any suh sitting of the Commissioners as aforesaid the Commissioners shall hear the Assessor, or any person on his behalf, and any person ontesting an assessment or his representative authorised in writing by him, and the evidene on oath of any witness or witnesses he may produe. The Commissioners may require any person ontesting an assessment or his representative as aforesaid to give evidene on oath, to verify on oath any written statement by him and to produe for the information of the Commissioners all books of aount or other douments. Commissioners may summon witnesses [1946/73] (2) It shall be lawful for the Commissioners to summon, in the presribed form, any person, exept the person making the return and the person in respet of whose inome the return was made, whom they may think able to give evidene respeting the assessment to be made, and to examine all suh persons on oath. Suh summons shall be served by delivering a opy thereof to the person named therein or by leaving the same with some person at his usual or last known plae of abode, three lear days before the day named in the summons for his appearane. Any witness who attends in obediene to suh summons shall be entitled to a daily allowane at the rate presribed for the time being in respet of witnesses in ases in the ourts of the Isle of Man. Page 122 AT 3 of 1970

123 Inome Tax At 1970 Setion 90 (3) If any person so summoned fails to appear or refuses to be sworn, and if any person so summoned or any witness at suh sitting, exept the lerk, agent, or servant of the person whose inome is being assessed, or other person entrusted or employed in the affairs of suh person being sworn, refuses to answer any question put to him by the Commissioners, he shall be guilty of an offene against this At. At the trial of any person so summoned as aforesaid for an offene under this setion, proof of the servie of suh summons may be by affidavit of the person serving it. (4) In default of appearane of the person ontesting the assessment or his representative authorised in writing by him, or after onsidering the evidene, oral and doumentary, produed as aforesaid, the Commissioners may onfirm or amend the assessment aording to the best of their judgment and shall give notie in writing of the onfirmation or amendment of the assessment. If notie of appeal is not given against suh determination it shall thereupon be final and onlusive. (5) The Chairman of the Commissioners or the Commissioner who is ating as Chairman of the sitting is hereby empowered to administer oaths to parties and witnesses at the hearing of any suh ontestation. 90 Appeal from deision of Commissioners to Staff of Government Division [1946/74] (1) No appeal shall lie from the Commissioners upon a question of fat. (2) Save as aforesaid, the person ontesting or his representative, shall be at liberty to appeal from the determination of the Commissioners to the Staff of Government Division upon giving to the Assessor written notie of appeal within twenty-one days from the time the servie of notie of suh final assessment. The Assessor shall be at liberty to appeal from the determination of the Commissioners to the Staff of Government Division upon giving the person ontesting written notie of appeal within twenty-one days from the time of the servie of notie of suh final assessment. (3) Upon reeiving or giving suh notie of appeal, as the ase may be, the Assessor shall forthwith leave notie in writing at the General Registry that notie of appeal has been given as aforesaid, and suh appeal shall be heard and determined by the Staff of Government Division. Suh appeal may be brought on by petition presented by the Assessor or the other party appealing, and the proeedings at suh hearing shall be aording to the ordinary pratie of the Court, and be subjet to appeal as in the ase of other judgments delivered by suh Court. (4) On the hearing of an appeal the Staff of Government Division may draw all suh inferenes as are not inonsistent with the fats expressly found AT 3 of 1970 Page 123

124 Setion 91 Inome Tax At 1970 and are neessary for determining the question of law, and shall have all suh powers for that purpose as if the appeal were an appeal from any judgment or order of any other division of the High Court, and may make any order whih the Commissioners ould have made, and also any suh further or other order as may be just, and the osts of and inidental to an appeal shall be in the disretion of the Staff of Government Division but no Commissioner shall be liable to any osts by reason or in respet of any appeal. (5) The Staff of Government Division shall ertify their determination to the Assessor with a diretion to him to make suh amendment of the assessment as may be neessary, and the assessment so amended or onfirmed shall be final and onlusive, subjet to suh further appeal as may be made aording to law. 91 Perjury before Staff of Government Division or Commissioners [1946/75] Any person who, in any written or oral statement made or verified by him upon oath before the Staff of Government Division or the Commissioners in any proeeding relating to the assessment of the inome of any person, or in any affidavit or oral statement on oath as to the means of a person ontesting an assessment in any proeedings before a Court, states anything whih he knows to be false or whih he has not reason to believe to be true, shall be liable, at the suit of the Assessor, on summary onvition, to a fine not exeeding 5,000 and, in default of payment, to imprisonment for a period not exeeding six months. 92 Entries in assessment list [1946/76] (1) The Assessor shall enter in the assessment list or the supplementary assessment lists, the assessments made by him and shall amend them in aordane with the determination of the Commissioners in the ase of ontested assessments, or in aordane with the deision of the Staff of Government Division on appeal from the Commissioners. 406 (2) [Repealed] 407 (3) The assessments appearing in the assessment list and supplementary assessment list shall for all purposes be deemed to be orret and onlusive, and payments of inome tax shall be made on suh assessments. Page 124 AT 3 of 1970

125 Inome Tax At 1970 Setion 93 Payment of tax 93 [Repealed] Tax payable in money or stamps [1946/79; 1946/99(2)] (1) The inome tax shall be olleted either in money or by means of stamps, or partly in one way and partly in the other, aording as may from time to time be direted by regulations made as hereinafter provided. (2) The Treasury may ause to be prepared and issued any stamps whih may be required for the purposes of this At Power to Treasury to make regulations [1946/80; 1946/100 and 114] (1) The Treasury may, from time to time (subjet to provisions of this At), make, and when made, revoke, alter, or add to, regulations for all or any of the following purposes, that is to say Regulating in what manner, and whether in money or by means of stamps, the inome tax payable under this At shall be olleted, aounted for, and paid over, and where the duties are to be olleted in money the order shall regulate the manner in whih the payment of the tax is to be authentially denoted by reeipt; Determining the sort of stamps to be used, and the way in whih, the time when, and the person by whom the stamps are to be anelled. 410 (2) Suh regulations shall be subjet to the approval of Tynwald and shall be filed in the General Registry, and shall be published in two newspapers published and irulating within the Isle of Man. Suh regulations shall ome into operation on the date of suh publiation, or on any later date named in the regulations, and, upon oming into operation, shall be as binding as if enated in this At. (3) The Treasury may also make regulations for the better arrying out of the provisions of this At and may presribe anything by this At authorised to be presribed A Forms Without prejudie to setions 71(2) and 72(2), forms to be used for the purposes of this At shall be suh as may be approved by the Assessor. 412 AT 3 of 1970 Page 125

126 Setion 96 Inome Tax At Time for payment of tax by orporate taxpayers (1) Inome tax due by a orporate taxpayer for an aounting period is due and payable on the day following the expiry of 12 months from the end of that aounting period whether or not a notie of assessment is issued and if a notie is issued no matter when it is issued. (2) If inome tax for an aounting period of a orporate taxpayer is due under subsetion (1) without the making of an assessment the amount shown in a return by the orporate taxpayer under setion A66 as the inome tax due and payable for the period will be treated for the purposes of the Inome Tax Ats as tax harged and due and payable under an assessment on the orporate taxpayer; and referenes in the Inome Tax Ats to assessed and assessment shall be onstrued aordingly A 96B Date when tax is payable (1) This setion applies in respet of all non-orporate taxpayers. (2) Subjet to setion 96B, inome tax in respet of a year of assessment shall be due and payable where a person dies or eases to be regarded as resident in the Island, 30 days after the date of the assessment, and in other ases, on 6 January in the year next following that year. (3) Inome tax due and payable under this setion shall be paid to the Assessor. 414 Payment on aount of inome tax (1) This setion applies to non-orporate taxpayers as regards eah year of assessment. (2) Every non-orporate taxpayer shall make a payment on aount of his liability to inome tax for a year of assessment on or before 6 January in that year, or if the Notie under subsetion (4) is served after the 6 Deember in that year, before the end of the period of thirty days beginning with the day on whih the Notie was given to the non-orporate taxpayer. (3) The amount falling to be paid on aount of tax shall be alulated in aordane with subsetions (5) to (7). (4) The Assessor shall give a payment on aount notie ( the Notie ) to eah non-orporate taxpayer to whom this setion applies and the Notie shall speify the amount falling to be paid on aount of tax. Page 126 AT 3 of 1970

127 Inome Tax At 1970 Setion 97 (5) Subjet to subsetion (7), if a non-orporate taxpayer was liable to pay inome tax under this At in respet of inome for the whole of the year of assessment immediately preeding the year to whih the payment applies ( the preeding year ), the amount falling to be paid on aount shall be 105% of the amount of tax due and payable in the preeding year. (6) Subjet to subsetion (7), where subsetion (5) does not apply, the amount falling to be paid on aount shall be suh amount as the Assessor estimates (to the best of his judgment) would have fallen to be paid if the non-orporate taxpayer had been liable to pay inome tax under this At for the whole of the preeding year. (7) In alulating the amount falling to be paid on aount, the Assessor shall take into aount inome tax deduted, or to be deduted, at soure and amounts otherwise standing to the redit of the non-orporate taxpayer. (8) Setion 119 (power of Tynwald to vary rates of allowanes, et by resolution) shall apply in respet of the perentage under subsetion (5) as it applies in respet of the power to vary any sum of money speified in this At C Setion 96B: supplementary (1) A non-orporate taxpayer to whom is given a notie of estimated payment on aount under setion 96B(6) shall be entitled to appeal to the Commissioners on the ground that the amount falling to be paid under the notie is not a fair and reasonable estimate. (2) Subjet to subsetion (3), the provisions of the Inome Tax Ats relating to appeals against an assessment apply to an appeal under subsetion (1). (3) An appeal under subsetion (1) shall be made by written notie stating the grounds for the appeal and given to the Assessor before the end of the period of 30 days beginning with the day on whih the notie was given to the appellant. (4) The provisions of the Inome Tax Ats as to the reovery of inome tax shall apply to an amount falling to be paid on aount of tax in the same manner as they apply to an amount of tax. (5) In setion 96B any referene to inome tax deduted at soure is a referene to inome tax deduted or treated as deduted from any inome or treated as paid on any inome Tax a first harge in favour of the Crown [1946/82] Until paid, inome tax shall be a preferene debt due to the Crown. 417 AT 3 of 1970 Page 127

128 Setion 98 Inome Tax At Notie to tax defaulters [1946/83] The Assessor may, on or before the first day of April in eah year, or as soon thereafter as pratiable, ause to be published in two newspapers, published and irulating in the Isle of Man, a notie to the effet that legal proeedings will be taken for the reovery of all inome tax whih may after the fifteenth day of April still remain unpaid: Provided that no notie that any suh proeedings will be taken shall be neessary, whether by suh publiation or otherwise A Distraint for overdue tax (1) If a person neglets or refuses to pay any tax harged by any assessment to tax under the Inome Tax Ats within 31 days after the date on whih the tax beomes due and payable, the Assessor may by notie in writing require that person to pay suh tax within 14 days of the delivery of the notie. 419 (2) A notie issued under subsetion (1) above shall be served in aordane with setion 116 of this At. (3) In subsetion (1) above, the words tax harged by any assessment to tax shall inlude an amount assessed and harged under setion 111 of this At; an amount of interest due and payable under setions 111A and 111B. 420 (4) If the person on whom notie is served does not pay the sum due within the said period of 14 days, the Assessor may issue to the appropriate Coroner a warrant in the form speified in Shedule 1A to this At. 421 (5) A warrant issued under this setion shall be enforeable in the same manner as an exeution of the High Court. (6) Without prejudie to the generality of subsetion (5) above, setions 13 to 14A of, and Shedules l to 2A to the Administration of Justie At 1981 shall apply, with the neessary modifiations, to the enforement of a warrant issued under this setion as they apply to the enforement of an exeution of the High Court. (7) This setion is without prejudie to any other remedy available for the reovery of unpaid tax B Power to set aside warrants (1) Where the Chief Registrar is, on the appliation of a person named in a warrant issued under setion 98A(4) of this At, satisfied that the sum due under the warrant has been paid in full; or Page 128 AT 3 of 1970

129 Inome Tax At 1970 Setion 99 () the notie issued under subsetion (1) of that setion was not served in the manner required by subsetion (2) of that setion; or there is an error on the fae of the warrant, the Chief Registrar may, on suh terms as he thinks fit, set aside the warrant. (2) If, on appliation under this setion, the Chief Registrar is satisfied that there is an error on the fae of the warrant, but that the appliant is not prejudied thereby, he may dismiss the appliation on suh terms as he thinks fit. (3) Whenever the Chief Registrar entertains a doubt as to any question of law arising in the ourse of any appliation under this setion, he may refer the question to the Chairman of the Commissioners for his opinion. (4) An appliation under this setion shall be made in writing to the Chief Registrar within 14 days of the date on whih the warrant first ame to the notie of the appliant and on reeipt of the appliation the Chief Registrar shall stay the enforement of the warrant and shall give notie to the Assessor forthwith. (5) The appliation shall be in suh form and ontain suh information as the Chief Registrar may require. (6) The Chief Registrar may adopt any method of proedure whih he may onsider to be onvenient and to afford a fair and equal opportunity to the appliant and the Assessor to present their respetive ases. (7) An appliation under this setion may be determined without a hearing but where a hearing is held it shall be informal and in private. (8) A deision of the Chief Registrar to set aside a warrant shall not prejudie any assessment of tax under the Inome Tax Ats. 423 (9) Where the Chief Registrar sets aside a warrant the Assessor shall not be prevented, exept in a ase to whih subsetion (1) of this setion applies, from issuing a fresh warrant in plae of that set aside; no person shall be liable for anything previously done in good faith under the warrant Proeedings for reovery of tax (1) The Assessor shall institute suh legal proeedings as may be neessary for the reovery of unpaid inome tax. 425 (2) Proeedings for the reovery of inome tax may be taken at any time after it beomes due and payable. 426 AT 3 of 1970 Page 129

130 Setion 100 Inome Tax At 1970 (3) Where the Assessor is satisfied that the amount or balane of any assessment is irreoverable the Assessor may write it off with the onsent of the Treasury. 427 (4) If the Assessor is satisfied that any amount or balane written off under subsetion (3) has for any reason eased to be irreoverable, the Assessor may institute suh legal proeedings as may be neessary for its reovery. (5) Proeedings for the reovery of unpaid inome tax may be onduted by an offier of the Treasury (whether or not an advoate) who is authorised by the Assessor; or a person (whether or not an advoate) who is a member of the Attorney General s Chambers and is authorised by, the Attorney General. 428 (6) A person authorised under subsetion (5) shall have a right of audiene in any ourt and, when ating in aordane with the authorisation, shall not be in ontravention of any provision of the Advoates At 1976, the Legal Pratitioners Registration At 1986 or any other enatment relating to the provision of legal servies or rights of audiene. (7) Where the amount or balane of any assessment is written off under subsetion (3); or having been written off, eases to be irreoverable under subsetion (4), the Assessor may make the neessary alterations to the assessment list or supplementary assessment list Assessor s ertifiate evidene of taxes and harges in arrear (1) For the purpose of reovering inome tax, or any balane thereof, in any ourt, a ertifiate signed by the Assessor ertifying that the person named in suh ertifiate has made default in payment of the tax, shall be suffiient evidene of the sum for tax therein mentioned having been duly harged and assessed, and of the same being due and owing and in arrear and unpaid to the Crown. 430 (2) A ertifiate under this setion shall be deemed to be authenti, and no proof shall be required of the signature or of the offiial harater of the person signing the same as Assessor Error or mistake in assessment [1946/86 amended by 1958/4] Where any error, omission, or mistake has been made in the preparation or prodution of any first or supplementary assessment it shall be lawful for the Page 130 AT 3 of 1970

131 Inome Tax At 1970 Setion 102 Assessor to amend the same within six years from the end of the year of assessment, and the Assessor may make an additional assessment harging the person liable in respet of the amount represented by suh error, omission, or mistake. The person so assessed shall be entitled to ontest the additional assessment, and shall have the same right of appeal as in the ase of a first assessment. This setion does not apply in respet of orporate taxpayers A Error or mistake in assessment: orporate taxpayers (1) Where, in respet of a orporate taxpayer, any error, omission, or mistake has been made in the preparation or prodution of any return or assessment in respet of an aounting period it shall be lawful for the Assessor to amend the same within 4 years from the end of the aounting period to whih the return or, as the ase may be, assessment relates. (2) The Assessor may make an additional assessment harging the orporate taxpayer liable in respet of the amount represented by an error, omission, or mistake mentioned in subsetion (1). (3) The orporate taxpayer so assessed shall be entitled to ontest the additional assessment, and shall have the same right of appeal as in the ase of a first assessment Late assessments [1946/87] If in any ase the assessment of any inome of a non-orporate taxpayer shall not be made in time to be inluded in the ordinary annual assessment list prepared under setion eighty-two of this At, the inome tax payable on suh inome shall be deemed to be due and payable on or before the thirtieth day after suh assessment has been made, and thereupon all the provisions of this At relating to the payment and reovery of inome tax shall apply mutatis mutandis Protetion of offier when ating without malie [1946/88] No ation or suit shall be brought against any person for any at done by him in pursuane of this At unless thirty days previous notie in writing, whih notie shall state fully the ause of suh ation or suit, shall be given by the person intending to bring suh ation or suit, nor unless suh ation or suit shall be ommened within two months next after the at or damage said to have been ommitted, nor unless it is expressly alleged in the delaration that suh at was done maliiously and without reasonable and probable ause, and if the plaintiff fails to prove suh allegation judgment shall be given for the defendant. AT 3 of 1970 Page 131

132 Setion 104 Inome Tax At Appliation of inome tax [Finane At 1958/7 amended by 1962/4] The inome tax payable under this At shall form part of the general revenue of the Isle of Man. Administration 105 Appointments of Assessor, Inspetor and other offiers, et [1946/99(1)] There shall from time to time be appointed () a person to perform the duties of Assessor under this At, suh person to be alled the Assessor of Inome Tax; 435 [Repealed] 436 ; and suh revenue offiers, lerks and other persons as may be neessary for the purposes of this At A Unlawful assumption of harater of offier, et If, for the purpose of obtaining admission to any house or other plae, or of doing or prouring to be done any at whih he would not be entitled to do or proure to be done of his own authority, or for any other unlawful purpose, any person falsely assumes the name, designation or harater of the Assessor or a person authorised by the Assessor he may be arrested and shall be guilty of an offene and shall be liable on summary onvition, to a fine of 5,000, or to ustody for a term not exeeding 3 months, or to both; or on onvition on information to a fine, or to ustody for a term not exeeding 2 years, or to both B Bribery and ollusion (1) If any member of the Treasury or any person referred to in paragraphs and () of setion 105 diretly or indiretly asks for or takes in onnetion with any of his duties any payment or other reward whatsoever, whether peuniary or other, or any promise or seurity for any suh payment or reward, not being a payment or reward whih he is lawfully entitled to laim or reeive; or enters into or aquieses in any agreement to do, abstain from doing, permit, oneal or onnive at any at or thing whereby the Crown or the General Revenue is or may be defrauded or whih is otherwise unlawful relating to any matter under the Inome Tax Ats, Page 132 AT 3 of 1970

133 Inome Tax At 1970 Setion 105 he shall be guilty of an offene under this setion. (2) If any person diretly or indiretly offers or gives to any member of the Treasury, the Assessor or any person authorised by the Assessor as aforesaid any payment or other reward whatsoever, whether peuniary or other, or any promise or seurity for any suh payment or reward; or proposes or enters into any agreement with any suh member, Assessor or person authorised as aforesaid, in order to indue him to do, abstain from doing, permit, oneal or onnive at any at or thing whereby the Crown or the General Revenue is or may be defrauded or whih is otherwise unlawful, being an at or thing relating to any matter under the Inome Tax Ats, or otherwise to take any ourse ontrary to his duty, he shall be guilty of an offene under this setion. (3) Any person ommitting an offene under this setion shall be liable on summary onvition to a fine of 5,000 and may be arrested. 439 Delivery of douments, et C Power to all for douments, et of taxpayer [P1970/9/20 and 20B in part] (1) Subjet to this setion, the Assessor may by notie in writing require a person () to deliver to him suh douments as are in the person s possession or power and as (in the Assessor s reasonable opinion) ontain, or may ontain, information relevant to (i) (ii) any liability to inome tax to whih the person is or may be subjet, or the amount of any suh liability; to furnish to him suh partiulars as the Assessor may reasonably require as being relevant to, or to the amount of, any suh liability; or to furnish to him suh evidene as the Assessor may reasonably require as being relevant to the person s residene status for the purposes of this At. (2) Before a notie is given to a person by the Assessor under this setion, the person must have been given a reasonable opportunity to deliver the douments in question, or to furnish the partiulars in question. AT 3 of 1970 Page 133

134 Setion 105 Inome Tax At 1970 (3) When the Assessor gives a notie under subsetion (1), he shall also give to the person to whom the notie applies a written summary of his reasons for the giving of the notie. (4) Subsetion (3) does not require the dislosure of any information whih would, or might, identify any person who has provided the Assessor with any information whih he took into aount in deiding whether to give the notie. (5) A notie under subsetion (1) does not oblige a person to deliver douments or furnish partiulars relating to the ondut of any pending appeal by him in respet of tax. (6) To omply with a notie under subsetion (1), opies of douments may be delivered instead of the originals; but the opies must be in suh form as the Assessor may reasonably require; and if so required by the Assessor in the ase of any douments speified in the requirement, the originals must be made available for inspetion by the Assessor in aordane with the requirement, and failure to omply with a requirement under this subsetion ounts as failure to omply with the notie D Power to all for douments relating to taxpayer [P1970/9/20 and 20B in part] (1) The powers onferred by this setion may be used for the purpose of enquiring into the liability to inome tax of any person ( the taxpayer ) in any ase in whih the Assessor has reasonable grounds for believing that the taxpayer onerned may have failed or may fail to omply with any provision of the Inome Tax Ats; and that any suh failure is likely to have led or to lead to serious prejudie to the proper assessment or olletion of tax. (2) Subjet to this setion and setion 105E, the Assessor may by notie in writing require any person other than the taxpayer to deliver to the Assessor or, if so required by the Assessor, to make available for inspetion by the Assessor, suh douments as are in his possession or power and as (in the Assessor s reasonable opinion) ontain, or may ontain, information relevant to () any liability to inome tax to whih the taxpayer is or may be subjet; the amount of any suh liability; the taxpayer s residene status for the purposes of this At. Page 134 AT 3 of 1970

135 Inome Tax At 1970 Setion 105 (3) Before a notie is given to a person by the Assessor under this setion, that person must have been given a reasonable opportunity to deliver or make available the douments in question. (3A) (3B) (3C) Subsetion (3C) applies if, on the appliation of the Assessor, 2 members of the Inome Tax Commissioners panel give their written onsent that it is to apply. 442 Consent shall not be given under subsetion (3A) unless both Commissioners are satisfied that the Assessor has reasonable grounds for suspeting the taxpayer of fraud. 443 When giving a person a reasonable opportunity to deliver or make available douments under subsetion (3), the Assessor may diret the person not to inform the taxpayer, or ause or permit the taxpayer to be informed, that the person has been given the opportunity to deliver or make available the douments in question; and not to dislose to any person, or ause or permit to be dislosed to any person (inluding the taxpayer), any information or matter whih is likely to prejudie the inquiry to whih the douments in question relate or the performane of the Assessor s funtions. 444 (4) Subjet to setion 105E(8), when the Assessor gives a notie under subsetion (2), he shall also give to the taxpayer onerned a opy of the notie; and a written summary of his reasons for the giving of the notie. 445 ommening on or after 6/4/2007. (5) Subsetion (4) does not require the dislosure of any information whih would, or might, identify any person who has provided the Assessor with any information whih he took into aount in deiding whether to give the notie. (6) As an alternative to delivering douments to omply with a notie under subsetion (2), opies of douments may be delivered instead of the originals; but the opies must be in suh form as the Assessor may reasonably require; and if so required by the Assessor in the ase of any douments speified in the requirement, the originals must be made available for inspetion by the Assessor in aordane with the requirement, and failure to omply with a requirement under this subsetion ounts as failure to omply with the notie. 446 AT 3 of 1970 Page 135

136 Setion 105 Inome Tax At E Noties under s 105D: further provisions [P1970/9/20 and 20B in part] (1) A notie under setion 105D(2) shall name the taxpayer with whose liability the Assessor is onerned unless the Assessor is satisfied () (d) that the notie relates to a taxpayer whose identity is not known to the Assessor or to a lass of taxpayers whose individual identities are not so known; that there are reasonable grounds for believing that the taxpayer or any of the lass of taxpayers to whom the notie relates may have failed or may fail to omply with any provision of the Inome Tax Ats; that any suh failure is likely to have led or to lead to serious prejudie to the proper assessment or olletion of tax; and that the information whih is likely to be ontained in the douments to whih the notie relates is not readily available from another soure. (2) A person to whom a notie under setion 105D(2) is given may, if, in aordane with subsetion (1), the notie does not name the taxpayer onerned, by notie in writing given to the Assessor within 30 days after the date of the notie under that setion, objet to that notie on the ground that it would be onerous for him to omply with it, and if the matter is not resolved by agreement, it shall be referred to the Commissioners, who may onfirm, vary or anel that notie. (3) The Treasury may by order delare that information of a partiular desription is not to be subjet to the obligation imposed by setion 105C(3) or 105D(4) if it is satisfied that there are reasonable grounds for suspeting the taxpayer of fraud or dislosure of information of that desription would prejudie the assessment or olletion of tax. (4) An order under subsetion (3) shall not ome into operation unless it is approved by Tynwald. (5) A notie under setion 105D(2) does not oblige a person to deliver or make available any doument the whole of whih originates more than 6 years before the date of the notie. (6) Subsetion (5) does not apply where the Assessor is satisfied that there is reasonable ground for believing that tax has, or may have been, lost to the General Revenue owing to the fraud of the taxpayer; and the notie is so expressed as to exlude the restritions of that subsetion. (7) A notie under setion 105D(2) in relation to a taxpayer who has died annot be given if more than 6 years have elapsed sine the death. Page 136 AT 3 of 1970

137 Inome Tax At 1970 Setion 105 (8) Subjet to subsetion (9), if, on the appliation of the Assessor, 2 members of the Inome Tax Commissioners panel give their written onsent, the opy and summary under setion 105D(4) need not be given to the taxpayer to whom they relate. 447 (9) Consent shall not be given under subsetion (8) unless both Commissioners are satisfied that the Assessor has reasonable grounds for suspeting the taxpayer of fraud. 448 (10) A Commissioner who gives a onsent under subsetion (8) shall not be liable in damages for, or in respet of, the onsent nor any at or matter done or omitted to be done in relation to the onsent unless the at or matter done or omitted to be done is shown to have been in bad faith. 449 (11) Subsetion (10) does not apply so as to prevent the award of damages made in respet of an at or omission on the ground that the at or omission was unlawful as a result of setion 6(1) of the Human Rights At (12) Where a onsent has been given by the Commissioners under subsetion (8), the person to whom the notie is given under setion 105D(2) shall not inform the taxpayer, or ause or permit the taxpayer to be informed, that the notie has been given, or dislose to any person, or ause or permit to be dislosed to any person (inluding the taxpayer), any information or matter whih is likely to prejudie the inquiry to whih the notie relates or the performane of the Assessor s funtions. 451 (13) Subjet to the defenes in subsetion (16), a person who fails to omply with subsetion (12) or a diretion under setion 105D(3C) is guilty of an offene and liable on summary onvition to a fine not exeeding 5,000 or to ustody for a term of 6 months, or to both. 452 (14) If an offene under subsetion (13) is ommitted by a body orporate and is proved to have been ommitted with the onsent or onnivane of, or to be attributable to neglet on the part of, a diretor, manager, seretary or other similar offier of the body orporate or a person who was purporting to at in suh a apaity, that person, as well as the body orporate, is guilty of the same offene and liable to be proeeded against and punished aordingly. 453 (15) Where the affairs of a body orporate are managed by its members or by agents, subsetion (14) applies in relation to the ats and defaults of a member or an agent in onnetion with the funtions of management as if that person were a diretor of the body orporate. 454 (16) It is a defene in proeedings for an offene under subsetion (13) for the person onerned to satisfy the ourt AT 3 of 1970 Page 137

138 Setion 105 Inome Tax At 1970 that all reasonable preautions were taken and all due diligene was exerised to avoid the ommission of the offene by the person onerned and by any person under his ontrol, or in the ase of an offene in respet of an alleged ontravention of subsetion (12) or a diretion under setion 105D(3C), that the person onerned did not know or suspet that the dislosure was likely to be prejudiial to the inquiry or to the performane of the Assessor s funtions F S 105D: auditors and tax advisers [P1970/9/20 and 20B in part] (1) Subjet to subsetion (3), a notie under setion 105D(2) (2) In subsetion (1) does not oblige a person who has been appointed as an auditor for the purposes of any enatment to deliver or make available douments whih are his property and were reated by him or on his behalf for or in onnetion with the performane of his funtions under that enatment, and does not oblige a tax adviser to deliver or make available douments whih are his property and onsist of relevant ommuniations. relevant ommuniations means ommuniations between the tax adviser and a person in relation to whose tax affairs he has been appointed, or any other tax adviser of suh a person, the purpose of whih is the giving or obtaining of advie about any of those tax affairs. (3) Subjet to subsetion (4), if, in aordane with setion 105E(1), a notie does not name the taxpayer onerned, subsetion (1) shall not have effet in relation to any doument whih ontains information giving the identity or address of any taxpayer to whom the notie relates or of any person who has ated on behalf of any suh person. (4) Subsetion (1) is not disapplied by subsetion (3) in the ase of any doument if the information within subsetion (3) is ontained in some other doument, and either (i) (ii) that other doument, or a opy of it, has been delivered to the Assessor, or that other doument has been inspeted by the Assessor. Page 138 AT 3 of 1970

139 Inome Tax At 1970 Setion 105 (5) Where subsetion (1) is disapplied by subsetion (3) in the ase of a doument, the person to whom the notie is given either shall deliver the doument to the Assessor or make it available for inspetion by the Assessor or shall deliver to the Assessor a opy (in suh form as the Assessor may reasonably require) of any parts of the doument whih ontain the information within subsetion (3), and if so required by the Assessor, make available suh parts of the doument as ontain that information for inspetion by the Assessor in aordane with the requirement; and failure to omply with any requirement under paragraph above shall onstitute a failure to omply with the notie G Ss 105C - 105F: supplementary [P1970/9/20 and 20B in part] (1) The persons who may be treated as the taxpayer for the purposes of setions 105C to 105E inlude a ompany whih has eased to exist and an individual who has died. (2) In setions 105C to 105E referenes to douments do not inlude () personal reords, or journalisti material, or items subjet to legal privilege, and referenes to partiulars do not inlude partiulars ontained in suh personal reords, journalisti material or items. (3) Subjet to subsetion (2), referenes in setions 105C to 105F to douments and partiulars are to those speified or desribed in the notie in question; and the notie shall require douments to be delivered (or delivered or made available), or partiulars to be furnished, within suh time (whih shall not be less than 30 days after the date of the notie) as may be speified in the notie; and the person to whom they are delivered, made available or furnished may take opies of them or of extrats from them. 458 Court orders to deliver douments, et H Orders for the delivery of taxpayer s douments (1) The High Court may make an order under this setion if satisfied on information on oath given by the Assessor that a notie under setion 105C(1) has not been omplied with; or AT 3 of 1970 Page 139

140 Setion 105 Inome Tax At 1970 that there is reasonable ground for suspeting that suh a notie will not be omplied with. (2) An order under this setion is an order requiring the person to whom the notie is given to () deliver to the Assessor suh douments as are in the person s possession or power and as (in the Court s opinion) ontain, or may ontain, information relevant to (i) (ii) any liability to inome tax to whih the person is or may be subjet, or the amount of any suh liability; furnish to the Assessor suh partiulars as the Court may speify as being relevant to, or to the amount of, any suh liability; or furnish to the Assessor suh evidene of residene as the Court may speify I Orders for the delivery of douments relating to taxpayer (1) The High Court may make an order under this setion if satisfied on information on oath given by the Assessor () that a notie under setion 105D(2) has not been omplied with; or 461 that there is reasonable ground for suspeting that suh a notie will not be omplied with; or that the taxpayer onerned may have failed or may fail to omply with any provision of the Inome Tax Ats, and that any suh failure is likely to have led or to lead to serious prejudie to the proper assessment or olletion of tax. (2) An order under this setion is an order requiring the person who appears to the Court to have in his possession or power the douments speified or desribed in the order to deliver them to the Assessor J Ss 105H and 105I: supplementary (1) An order under setion 105H or 105I shall require ompliane within 7 days after the day on whih notie of the order is served on him, or suh shorter or longer period as may be speified in the order. (2) If a person fails to omply with an order made under setion 105H or 105I, he may be dealt with as if he had ommitted a ontempt of the ourt. (3) Where an order under setion 105H or 105I applies to a doument in eletroni or magneti form, the order shall be taken to require the Page 140 AT 3 of 1970

141 Inome Tax At 1970 Setion 105 person to deliver the information reorded in the doument in a form in whih it is visible and legible. (4) Setions 105H or 105I do not apply to personal reords, or journalisti material, or () items subjet to legal privilege K Ss 105H and 105I: noties and proedures (1) A person is entitled to at least 14 days notie of the intention to apply for an order against him under setion 105H or 105I, and to appear and be heard at the hearing of the appliation, unless the High Court is satisfied that this would seriously prejudie the investigation of the offene. (2) A person who has been given notie of intention to apply for an order under setion 105H or 105I shall not oneal, destroy, alter or dispose of any doument to whih the appliation relates, or dislose to any person (other than his professional legal adviser or tax adviser) information or any other matter likely to prejudie the investigation of the offene to whih the appliation relates. (3) Subsetion (2) does not prevent anything being done () (d) with the leave of the Court, with the written permission of the Assessor authorised for the purpose, after the appliation has been dismissed or abandoned, or after any order made on the appliation has been omplied with. (4) Subsetion (2) does not prevent a professional legal adviser from dislosing any information or other matter to, or to a representative of, a lient of his in onnetion with the giving by the adviser of legal advie to the lient; or to any person (i) (ii) in ontemplation of, or in onnetion with, legal proeedings; and for the purpose of those proeedings. (5) Subsetion (2) does not prevent a tax adviser from dislosing any information or other matter to, or to a representative of, a lient of his in onnetion with the giving by the adviser of tax advie to the lient AT 3 of 1970 Page 141

142 Setion 105 Inome Tax At 1970 (6) Subsetions (4) and (5) do not apply in relation to any information or other matter whih is dislosed with a view to furthering a riminal purpose. (7) A person who fails to omply with the obligation in subsetion (2) or may be dealt with as if he had failed to omply with an order under setion 105H or 105I as the ase requires L Falsifiation et of douments [P1970/9/20BB] (1) Subjet to subsetions (2) to (4), a person is guilty of an offene if he intentionally falsifies, oneals, destroys or otherwise disposes of, or auses or permits the falsifiation, onealment, destrution or disposal of, a doument whih he has been required by a notie under setion 105C or 105D or an order under setion 105H or 105I, or he has been given an opportunity in aordane with setion 105C(2) or 105D(3), to deliver, or to deliver or make available for inspetion. (2) A person does not ommit an offene under subsetion (1) if he ats () with the written permission of the Assessor authorised for the purpose; or after the doument has been delivered or, in a ase within setion 105C, inspeted, or after a opy has been delivered in aordane with setion 105C(1) or 105D(2) and the original has been inspeted. (3) A person does not ommit an offene under subsetion (1) if he ats after the end of the period of 2 years beginning with the date on whih the notie is given or the order is made, unless before the end of that period the Assessor has notified the person in writing that the notie or order has not been omplied with to his satisfation. (4) A person does not ommit an offene under subsetion (1) if he ats after an appliation for onsent to a notie being given in relation to the doument has been refused. (5) A person guilty of an offene under subsetion (1) shall be liable on summary onvition, to a fine not exeeding 5,000; on onvition on information, to ustody for a term not exeeding 2 years or to a fine or to both. 465 Page 142 AT 3 of 1970

143 Inome Tax At 1970 Setion M Entry with warrant to obtain material [P/1970/9/20C] (1) If a Deemster is satisfied on information on oath given by the Assessor that there is reasonable ground for suspeting that an offene involving fraud in onnetion with, or in relation to, inome tax is being, has been or is about to be ommitted; and that evidene of it is to be found on premises speified in the information, the Deemster may issue a warrant in writing authorising the Assessor to enter the premises, if neessary by fore, at any time within 14 days from the time of issue of the warrant, and searh them. (2) An appliation for a warrant under this setion shall not be approved under subsetion (1) unless there are reasonable grounds for believing that use of the proedure under setion 105H or 105I (order for prodution of douments) might seriously prejudie the investigation. (3) The powers onferred by a warrant under this setion shall not be exerisable outside suh times of day as may be so speified; if the warrant so provides, otherwise than in the presene of a onstable in uniform. (4) When entering the premises under the authority of a warrant under this setion the Assessor may () take with him suh other persons as appear to him to be neessary; seize and remove any thing whatsoever found there whih he has reasonable ause to believe may be required as evidene for the purposes of proeedings in respet of suh an offene as is mentioned in subsetion (1); and searh or ause to be searhed any person found on the premises whom he has reasonable ause to believe to be in possession of any suh things; but no person shall be searhed exept by a person of the same sex. (5) In the ase of any information ontained in a omputer stored in any eletroni form whih is information that the Assessor has reasonable ause to believe may be required as evidene for the purposes mentioned in subsetion (4); and is aessible from the premises, the power of seizure under that subsetion inludes a power to require the information to be produed in a form in whih it an be taken away and in whih it is visible and legible or from whih it an readily be produed in a visible and legible form. AT 3 of 1970 Page 143

144 Setion 105 Inome Tax At 1970 (6) Nothing in subsetion (4) authorises the seizure and removal of items subjet to legal privilege. (7) Items held with the intention of furthering a riminal purpose are not subjet to legal privilege. (8) A person seeking to exerise the powers onferred by a warrant under this setion or, if there is more than one person, that one of them who is in harge of the searh () if the oupier of the premises onerned is present at the time the searh is to begin, shall supply a opy of the warrant endorsed with his name to the oupier; if at that time the oupier is not present but a person who appears to the Assessor to be in harge of the premises is present, shall supply suh a opy to that person; and if neither paragraph nor paragraph applies, shall leave suh a opy in a prominent plae on the premises. (9) Where entry to premises has been made with a warrant under this setion, and the person making the entry has seized any things under the authority of the warrant, he shall endorse on or attah to the warrant a list of the things seized N Proedure where douments et are removed [P/1970/9/20CC] (1) A person who removes anything in the exerise of the power onferred by setion 105M shall, if so requested by a person showing himself to be the oupier of premises from whih it was removed, or to have had ustody or ontrol of it immediately before the removal, provide that person with a reord of what has been removed. (2) The reord shall be provided within a reasonable time from the making of the request for it. (3) Where anything that has been removed by the Assessor as mentioned in subsetion (1) is of suh a nature that a photograph or opy of it would be suffiient for use as evidene at a trial for an offene, or for forensi examination or for investigation in onnetion with an offene, it shall not be retained longer than is neessary to establish that fat and to obtain the photograph or opy. (4) Subjet to subsetion (8), if a request for permission to be granted aess to anything whih Page 144 AT 3 of 1970

145 Inome Tax At 1970 Setion 105 has been removed, and is retained for the purpose of investigating an offene, is made to the Assessor by a person who had ustody or ontrol of the thing immediately before it was so removed, or by someone ating on behalf of any suh person, the Assessor shall allow the person who made the request aess to it under the supervision of the Assessor. (5) Subjet to subsetion (8), if a request for a photograph or opy of any suh thing is made to the Assessor by a person who had ustody or ontrol of the thing immediately before it was so removed, or by someone ating on behalf of any suh person, the Assessor shall allow the person who made the request aess to it under the supervision of the Assessor for the purpose of photographing it or opying it, or photograph or opy it, or ause it to be photographed or opied. (6) Where anything is photographed or opied under subsetion (5) the photograph or opy shall be supplied to the person who made the request. (7) The photograph or opy shall be supplied within a reasonable time from the making of the request. (8) There is no duty under this setion to grant aess to, or to supply a photograph or opy of, anything if the Assessor has reasonable grounds for believing that to do so would prejudie () the investigation of an offene for the purposes of whih the thing was removed; the investigation of another offene; or any riminal proeedings whih may be brought as a result of any investigation mentioned in paragraph or O Interpretation of ss 105C to 105N In setions 105C to 105N doument means anything in whih information of any desription is reorded but without prejudie to the definition of that word in the Interpretation At 1976; items subjet to legal privilege has the same meaning as in the Polie Powers and Proedures At 1998; journalisti material has the same meaning as in the Polie Powers and Proedures At 1998; personal reords has the same meaning as in the Polie Powers and Proedures At 1998; tax adviser means a person who AT 3 of 1970 Page 145

146 Setion 106 Inome Tax At 1970 in the ordinary ourse of his business, gives, and holds himself out as giving, advie to others about their tax affairs; and has been appointed to give suh advie either by the person in relation to whose tax affairs he has been appointed or by another tax adviser of that person Information onfidential (1) Subjet to subsetions (4) and (5), every person having any offiial duty under or in respet of the Inome Tax Ats has a duty of onfidentiality in relation to all douments and information obtained by that person for the purposes, or in the disharge, of that duty. (2) Subjet to subsetions (4) and (5), every person holding douments or information on behalf of any person having suh an offiial duty also has a duty of onfidentiality in relation to all douments and information so held. (3) Subjet to subsetions (4) and (5), if any person having a duty of onfidentiality under subsetion (1) or (2) disloses or attempts to dislose to another any doument or information referred to in those subsetions, he shall be guilty of an offene against this At. (4) Subsetions (1) to (3) shall not prelude the dislosure of douments and information to () (d) (e) (f) (g) the Attorney General or any offier authorised by him; the Chief Finanial Offier; the Assessor; any person engaged in the assessment or olletion of inome tax; any person who, under the diretion of the Assessor, is undertaking or assisting in the assessment or olletion of inome tax; the Judgements Offier or a Coroner or Lokman; a person authorised to audit the aounts of the General Revenue under setion 4 of the Finane At 1958, who shall be entitled to examine the same for the purpose of suh audit; or (h) a duly authorised offier of the Treasury pursuant to setion 8(2) of the Treasury At (5) Subsetions (1) to (3) shall not prelude the dislosure of douments and information for the purpose of an objetion or appeal before the Commissioners or the Staff of Government Division; for the purpose of proeedings onneted with a matter in relation to whih the Treasury, the Chief Finanial Offier or the Assessor perform duties; Page 146 AT 3 of 1970

147 Inome Tax At 1970 Setion 106 () (d) (e) if the dislosure is required or authorised by order of a ourt in the Island; 469 for the purpose of enabling or assisting the Treasury to disharge its funtions in respet of bona vaantia; if the dislosure is required or authorised by any statutory provision (inluding a provision in this At); 470 (f) if the dislosure is made in the presribed manner under setion 5 of the Corruption At (6) Every person who inites or ounsels, or attempts to proure another person to ommit any of the offenes aforesaid shall be guilty of an offene against this At. (7) Referenes in this setion to douments and information whih are held on behalf of another inlude referenes to douments and information whih are held by a person who provides servies to the other; and are held by that person in onnetion with the provision of those servies A Dislosure of information between the Assessor and the Colletor of Customs and Exise [P1972/41/127] (1) Notwithstanding setion 106 of this At and any other restrition upon the dislosure of information imposed by any enatment or otherwise, the Assessor or an offier authorised by the Assessor may dislose information to the Colletor of Customs and Exise or an offier authorised by him for the purpose of assisting him in the performane of his duties. (2) Information obtained pursuant to subsetion (1) shall not be dislosed to any person other than the Colletor of Customs and Exise and any offier authorised by him; or for the purpose of any proeedings onneted with a matter in relation to whih the Colletor performs duties. (3) Any person who disloses information pursuant to subsetion (1) shall not be guilty of an offene under setion 106(2) of this At. (4) If the Colletor or any person authorised by him fails to omply with subsetion (2) he shall be guilty of an offene. 473 AT 3 of 1970 Page 147

148 Setion 106 Inome Tax At B Dislosure of information by Department of Soial Care et (1) Notwithstanding any restrition upon the dislosure of information imposed by any enatment or otherwise, the Department of Soial Care and the Colletor of Customs and Exise may dislose information to the Assessor or an offier authorised by him for the purpose of assisting him in the performane of his duties under the Inome Tax Ats. 474 (2) Information obtained pursuant to subsetion (1) shall not be dislosed to any person other than the Assessor and any offier authorised by him, or for the purpose of any proeedings onneted with a matter in relation to whih the Assessor performs duties. (3) If the Assessor or any person authorised by him fails to omply with subsetion (2) he shall be guilty of an offene. (4) This setion is without prejudie to any other provision of this At whih enables the Assessor to require information in relation to speifi ases C Dislosure of information by the Assessor to the Department of Soial Care (1) Notwithstanding setion 106 of this At and any other restrition upon the dislosure of information imposed by any enatment or otherwise, the Assessor or an offier authorised by the Assessor may dislose information to the Department of Soial Care ( the Department ) for the purpose of assisting it in the performane of its duties. 476 (2) This setion applies to information obtained before as well as after the oming into operation of this setion. (3) Information obtained pursuant to subsetion (1) shall not be dislosed to any person other than () the Department; any offier authorised by the Department to reeive suh information; or for the purpose of any proeedings onneted with a matter in relation to whih the Department performs duties. (4) If the Department or any person authorised by it fails to omply with subsetion (3) they shall be guilty of an offene. (5) Information obtained by means of a dislosure authorised by this setion shall not be further dislosed exept with the onsent of the Assessor. 477 Page 148 AT 3 of 1970

149 Inome Tax At 1970 Setion D Dislosure of information to enforing authorities, et (1) This setion applies to information whih is held by or on behalf of the Assessor and any person having any offiial duty in respet of inome tax ( the holders ). (2) This setion applies to information obtained before as well as after the oming into operation of this setion. (3) No restrition on the dislosure of information imposed by statute (inluding this At) or otherwise, prevents the dislosure, in aordane with the following provisions of this setion, of information to whih this setion applies if the dislosure is made for the purposes of enabling or assisting the Finanial Supervision Commission, the Insurane and Pensions Authority or an enforing authority to disharge its funtions. (4) No dislosure of information to whih this setion applies shall be made by virtue of this setion unless the person by whom the dislosure is made is satisfied that the making of the dislosure is proportionate to what is sought to be ahieved by it. (5) Information to whih this setion applies shall not be dislosed by virtue of this setion exept with the onsent of the Assessor. (6) Information obtained by means of a dislosure authorised by subsetion (3) shall not be further dislosed exept with the onsent of the Assessor. (7) A onsent for the purposes of subsetion (5) or (6) may be given either in relation to a partiular dislosure or in relation to dislosures made in suh irumstanes as may be speified or desribed in the onsent. (8) Nothing in this setion authorises the making of any dislosure whih is prohibited by any provision of the Data Protetion At (9) Referenes in this setion to information whih is held on behalf of the holders inlude referenes to information whih is held by a person who provides servies to any of the holders; and is held by that person in onnetion with the provision of those servies. (10) Nothing in this setion shall be taken to prejudie any power to dislose information whih exists apart from this setion E Dislosure of information to Treasury and Assessor by ertain authorities (1) This setion applies to any information whih is held by or on behalf of an enforing authority or the Manx Eletriity Authority ( the holders ). AT 3 of 1970 Page 149

150 Setion 106 Inome Tax At 1970 (2) No restrition on the dislosure of information imposed by statute (inluding this At) or otherwise, prevents the dislosure to the Treasury or the Assessor, in aordane with this setion, of information or douments to whih this setion applies if the dislosure is made for the purpose of enabling or assisting the Treasury or the Assessor to disharge their respetive funtions under the Inome Tax Ats or in respet of inome tax. (3) Information obtained by means of a dislosure authorised by subsetion (2) shall not be dislosed exept for a purpose mentioned in that subsetion; and with the onsent of the relevant enforing authority. (4) A onsent for the purposes of subsetion (3) may be given either in relation to a partiular dislosure or in relation to dislosures made in suh irumstanes as may be speified or desribed in the onsent. (5) Nothing in this setion authorises the making of any dislosure whih is prohibited by any provision of the Data Protetion At (6) Referenes in this setion to information whih is held on behalf of the holders inlude referenes to information whih is held by a person who provides servies to the partiular holder; and is held by that person in onnetion with the provision of those servies. (7) Nothing in this setion shall be taken to prejudie any power to dislose information or douments whih exists apart from this setion F Matters supplementary to ss 106C to 106E (1) In setions 106C to 106E enforing authority means the Isle of Man Offie of Fair Trading; the Isle of Man Gambling Supervision Commission; 480 () (d) the Chief Constable and the members of the Polie Fore; and any person (other than the Finanial Supervision Commission and the Insurane and Pensions Authority) who is presribed for the purpose of this definition by an order made by the Treasury; information inludes douments. (2) An order under subsetion (1) shall not ome into operation unless it is approved by Tynwald. 481 Page 150 AT 3 of 1970

151 Inome Tax At 1970 Setion Repayment of tax [1946/102 amended by 1955(2)/4; 1958/4] (1) If it is proved to the satisfation of the Assessor that the amount paid on any assessment is in exess of the amount properly hargeable, the person who has paid the same shall be entitled to have the amount so in exess refunded. (2) All laims for repayment under this setion shall be made within six years from the end of the year of assessment in respet of a nonorporate taxpayer and within 4 years from the end of the aounting period to whih the assessment relates in respet of a orporate taxpayer, and any laim not made within suh period shall be disallowed. 482 (3) The repayment shall be made by the Treasury on the ertifiate of the Assessor. 483 (4) This setion shall not apply to any person whose assessment has been finally determined after ontestation before the Assessor or Commissioners or on appeal to the Staff of Government Division or by virtue of setion 86(6) of this At A Repayment supplements: orporate taxpayers (1) Subjet to the provisions of this setion, where inome tax has been paid by or on behalf of a body orporate for an aounting period; and a repayment of that tax of not less than 250 is made by the Treasury after the end of 12 months following the end of that period, the repayment shall be inreased under this setion by an amount (a repayment supplement ) equal to interest on the amount repaid at the rate of 0.5% per annum (alulated on a daily basis) for the period (if any) between the relevant time and the date on whih repayment is made. 485 (2) For the purposes of subsetion (1) if the repayment is of tax that was paid after the end of the 12 months following the date on whih the tax was due and payable, the relevant time is the date on whih that tax was paid; in any other ase, the relevant time is the end of the 12 months mentioned in that subsetion. (3) Subjet to subsetion (4), where a repayment to whih subsetion (1) applies is of tax paid in respet of two or more aounting periods, the repayment shall as far as possible be treated for the purposes of this subsetion as a repayment of tax paid in a later rather than an earlier period among those periods. AT 3 of 1970 Page 151

152 Setion 107 Inome Tax At 1970 (4) Where in onsequene of an assessment for any year of assessment there is made by the Treasury a repayment of inome tax of not less than 250 to a orporate taxpayer, being an amount whih takes aount of tax overpaid or remaining unpaid for one or more earlier aounting periods, then the repayment shall for the purposes of this subsetion be attributable to suh of the periods in question, and in suh proportions, as may be determined in aordane with regulations made under and for the purposes of this subsetion by the Treasury; and subsetions (1) to (3) shall have effet in relation to so muh of the repayment as is by virtue of paragraph attributed to any partiular aounting period as if in subsetion (1) the words of not less than 250 were omitted. (5) The Treasury may by regulations from time to time inrease or derease the rate of interest by referene to whih repayment supplements are alulated under this setion. (6) A repayment supplement shall not be payable under this setion in respet of a repayment or payment made in onsequene of an order or judgment of a ourt having power to allow interest on the repayment or payment. (7) This setion shall not apply in respet of a repayment of inome tax that falls due by reason of a laim made under setion 27A of this At under whih the whole or any part of a loss inurred in any period is set off against profits of an earlier period; or a laim for any group relief under Shedule 2 to the Inome Tax At 1980 under whih a body orporate in the same group as the laimant surrenders trading losses or other amounts eligible for relief from inome tax for the benefit of the laimant. (8) If a orporate taxpayer is liable to a ivil penalty under setion 112A on the grounds that it has not made and delivered a return of inome; or is not so liable and an assessment in default of a return of inome is made under setion 86A, no repayment supplement shall be due to that taxpayer in the ase of any repayment of tax in respet of the aounting period to whih the relevant return relates. (9) A repayment supplement paid to any person under this setion shall not be inome of that person for any tax purposes. (10) Regulations under this setion shall be laid before Tynwald. Page 152 AT 3 of 1970

153 Inome Tax At 1970 Setion 107 (11) No supplement shall be paid under this setion in respet of any period preeding the date on whih this setion omes into operation B Repayment supplements: non-orporate taxpayers (1) Subjet to the following provisions of this setion, a repayment of an amount of not less than 100 made by the Treasury in respet of an amount paid on aount of inome tax under setion 96B for a year of assessment in whih the non-orporate taxpayer was resident in the Isle of Man; 487 inome tax paid by or on behalf of any non-orporate taxpayer for a year of assessment in whih a non-orporate taxpayer was resident in the Isle of Man, shall be inreased under this setion by an amount (a repayment supplement ) equal to interest on the amount repaid at the rate of 0.5% per annum for the period (if any) between the relevant time and the date on whih the order for the repayment is issued. 488 (2) For the purposes of subsetion (1), if the repayment is the repayment of () an amount paid in aordane with the requirements of setion 96B on aount of inome tax for a year of assessment; 489 inome tax for suh a year whih is not inome tax deduted at soure; or inome tax deduted at soure for a year of assessment, the relevant time is the 6 January in the year to whih the payment relates but, if the non-orporate taxpayer has failed by that date to pay a sum equal to either (i) the full amount required to be paid under setion 96B; or 490 (ii) the amount of inome tax finally assessed as due and payable, whihever is the lower, the relevant time is the day after full payment is made of the amount of inome tax assessed as due and payable. (3) For the purposes of subsetion (2), where a repayment in respet of inome tax for a year of assessment is made to any non-orporate taxpayer, that repayment shall be attributed to the payment made by him under setion 96B on aount of inome tax for that year; 491 in so far as it exeeds the amount (if any) to whih it is attributable under paragraph, shall be attributed to inome tax deduted at soure for that year; and AT 3 of 1970 Page 153

154 Setion 107 Inome Tax At 1970 () in so far as it is attributable to a payment made in instalments, shall be attributed to a later instalment before being attributed to an earlier one. (4) In this setion any referene to inome tax deduted at soure for a year of assessment is a referene to inome tax deduted or treated as deduted from any inome, or treated as paid on any inome, in respet of that year. (5) The Treasury may by order inrease or derease the rate of interest by referene to whih repayment supplements are alulated under subsetion (1). (6) A repayment supplement shall not be payable under this setion in respet of a repayment or payment made in onsequene of an order or judgment of a ourt having power to allow interest on the repayment or payment. (7) A repayment supplement paid to any non-orporate taxpayer under this setion shall not be inome of that taxpayer for any tax purposes. (8) An order under this setion shall not ome into operation unless it is approved by Tynwald. (9) No interest shall be paid under this setion in respet of any period preeding the date on whih this setion omes into operation. (10) If a non-orporate taxpayer is liable to a ivil penalty under setion 111D on the grounds that he has not made and delivered a return of inome; or is not so liable and an assessment in default of a return of inome is made under setion 86, no repayment supplement shall be due to that taxpayer in the ase of any repayment of tax in respet of the year of assessment to whih the relevant return relates. (11) This setion shall not apply in respet of a repayment of inome tax that falls due by reason of a laim made under setion 27A of this At under whih the whole or any part of a loss inurred in any period is set off against profits of an earlier period. (12) Subsetions (1) to (11) shall apply in relation to the trustees of a settlement or personal representatives as they apply in relation to a nonorporate taxpayer. (13) For the purposes of this setion inome tax deduted by virtue of the Inome Tax (Instalment Payments) At 1974 from a person s remuneration during any year of assessment shall be treated as paid by him for that and no other year of assessment. 492 Page 154 AT 3 of 1970

155 Inome Tax At 1970 Setion 107 Differential tax rates: anti-avoidane 493 A108 Loans to partiipators, et (1) This setion applies to all orporate taxpayers. 494 (2) Subsetion (3) applies if the orporate taxpayer makes any loan or advanes any money to an individual who is liable to inome tax in the Isle of Man and who is () a partiipator in the orporate taxpayer 495 ; or an assoiate of a partiipator; or an offier of the orporate taxpayer 496 ; or (d) an assoiate of an offier of the orporate taxpayer 497, otherwise than in the ordinary ourse of a business arried on by the orporate taxpayer (whih inludes the lending of money) 498. (3) If this subsetion applies, there shall be assessed on and reoverable from the orporate taxpayer, as if it were an amount of inome tax hargeable on the orporate taxpayer for the aounting period in whih the loan or advane is made, an amount equal to suh proportion of the amount of the loan or advane as orresponds to the higher rate for individuals under setion 1 of the At in fore for the year of assessment in whih the loan or advane is made. 499 (4) Subsetion (3) is subjet to the following provisions of this setion and to the provisions of setions B108 to J108. (5) Subsetion (3) shall not apply to a loan advaned at a normal ommerial rate if the ordinary business arried on by the orporate taxpayer inludes the lending of money 500 ; and the orporate taxpayer is authorised by a finanial regulator to arry on a business whih inludes the lending of money 501. (6) The amount assessed under subsetion (3) shall not be dedutible in omputing the profits for the purposes of inome tax. 502 B108 Setion A108: treatment of ertain loans (1) For the purposes of setion A108, the ases in whih the orporate taxpayer is to be regarded as making a loan to any person shall inlude a ase where that person inurs a debt to the orporate taxpayer 503, or a debt due from that person to a third person is assigned to the orporate taxpayer 504, AT 3 of 1970 Page 155

156 Setion 107 Inome Tax At 1970 and in suh a ase the orporate taxpayer shall be regarded as making a loan of an amount equal to the debt 505. (2) Subsetion (1) shall not apply to a debt inurred for the supply by the orporate taxpayer of goods or servies in the ordinary ourse of its trade or business unless the period of redit given exeeds 6 months or is longer than that normally given to the orporate taxpayer s ustomers. 506 (3) Setion A108(3) shall not apply to a loan made to a diretor or employee of the orporate taxpayer, or of an assoiated orporate taxpayer of the orporate taxpayer, if () the borrower works full-time for the orporate taxpayer or any of its assoiated ompanies 507 ; and the borrower does not have a material interest in the orporate taxpayer or in any assoiated orporate taxpayer of the orporate taxpayer 508 ; and suh other onditions as are presribed by order made by the Treasury are omplied with. 509 (4) If a borrower referred to in subsetion (3) aquires a material interest in the orporate taxpayer or in any assoiated orporate taxpayer of the orporate taxpayer at a time when the whole or part of any suh loan remains outstanding, the orporate taxpayer shall be regarded as making to the borrower at that time a loan of an amount equal to the sum outstanding. 510 (5) Where, after a orporate taxpayer has been assessed to tax under setion A108 in respet of any loan or advane, the loan or advane or any part of it is repaid to the orporate taxpayer, relief shall be given from that tax or a proportionate part of that tax by disharge or repayment 511. (6) Relief under subsetion (5) shall be given on a laim whih shall be made within 4 years from the end of the aounting period in whih the repayment is made and shall be treated on a first in first out basis. 512 (7) For the purposes of this setion, a person has a material interest in a orporate taxpayer if the person, either alone or with one or more of the person s assoiates, or if any assoiate of the person with or without any suh other assoiates, is the benefiial owner of, or is able diretly or indiretly, to ontrol, more than 5% of the ordinary share apital of the orporate taxpayer. 513 (8) An order under subsetion (3)() shall not ome into operation unless it is approved by Tynwald. C108 Loans through intermediaries, et (1) Where under arrangements made by any person otherwise than in the ordinary ourse of a business arried on by that person Page 156 AT 3 of 1970

157 Inome Tax At 1970 Setion 107 the orporate taxpayer makes a loan or advane whih apart from this subsetion does not give rise to any harge on the orporate taxpayer under setion A108(3) 516, and some person other than the orporate taxpayer makes a payment or transfers property to, or releases or satisfies (in whole or in part) a liability of, an individual who is a partiipator in the orporate taxpayer or an assoiate of a partiipator or an offier of the orporate taxpayer or an assoiate of an offier, 517 then, unless in respet of the matter referred to in paragraph there is to be inluded in the total inome of the partiipator, offier or assoiate an amount not less than the loan or advane, this setion shall apply as if the loan or advane had been made to the partiipator, offier or assoiate. (2) In subsetion (1) and setion A108(2), the referenes to an individual apply also to a orporate taxpayer reeiving the loan or advane in a fiduiary or representative apaity 518 ; and to a orporate taxpayer not resident in the Island 519. (3) In a ase where the orporate taxpayer is not resident in the Island, the amount assessed on and reoverable from the orporate taxpayer under setion A108(3) shall be payable by the borrower on behalf of the orporate taxpayer and shall be a debt due by the borrower in all respets as inome tax due under the Inome Tax Ats. 520 (4) For the purposes of this setion and setions A108 and Setion B108, any partiipator in, or offier of, a orporate taxpayer whih ontrols another orporate taxpayer shall be treated as being also a partiipator in, or offier of, that other orporate taxpayer. D108 Effet of release, et of debt in respet of loan under setion A108 (1) Subjet to this setion, where the orporate taxpayer is assessed or liable to be assessed under setion A108(3) in respet of a loan or advane and it releases or writes off the whole or part of the debt in respet of the loan or advane, then for the purpose of omputing the total inome of the person to whom the loan or advane was made, a sum equal to the amount so released or written off shall be treated as inome reeived by suh person after dedution of inome tax (of suh amount as was paid or payable by the orporate taxpayer under setion A108(3) in respet of the amount of the loan or advane that is released or written off) from a orresponding gross amount; 523 no repayment of inome tax shall be made in respet of that inome; AT 3 of 1970 Page 157

158 Setion 107 Inome Tax At 1970 () the notional dedution of inome tax under paragraph shall not relieve the person to whom the loan or advane was made of any obligation to aount for tax 524. (1A) If in respet of a year of assessment an amount is treated as inome reeived by a person under subsetion (1); and that person has paid or is liable to pay inome tax under the Inome Tax Ats on that inome, that person shall be entitled to relief from inome tax paid or payable on the said inome of an amount equal to the lesser of the two following amounts the amount of inome tax as was paid or payable by the orporate taxpayer under setion A108(3) in respet of the amount of the loan or advane that is released or written off; and 525 the marginal amount. 526 (1B) In subsetion (1A), marginal amount means the amount obtained by the formula where A B A is the total amount of the inome tax payable by a person under this At for any year of assessment; and B is the total amount of inome tax whih would be payable by that person under this At in respet of that year of assessment if the amount treated as inome reeived under subsetion (1) were to be disregarded. 527 (2) If the loan or advane referred to in subsetion (1) was made to a person who has sine died, or to trustees of a trust whih has ome to an end, this setion, instead of applying to the person to whom it was made, shall apply to the person from whom the debt is due at the time of release or writing off (and aordingly, if it is due from suh person as personal representative, the amount treated as reeived by suh person shall be hargeable to inome tax at the higher rate for individuals under setion 1 of the At), and subsetion (1) shall apply aordingly with the neessary modifiations. 528 (3) Where the whole or part of the debt in respet of a loan or advane made to an individual is released or written off subsetions (1) and (2) shall not have effet in relation to the loan or advane if, under setion 2G, the amount so released or written off falls to be treated as inome attributable to the employment of that individual; and Page 158 AT 3 of 1970

159 Inome Tax At 1970 Setion 107 but without prejudie to the generality of setion 2G, that setion shall (subjet to setion 2H) ontinue to apply to suh amount as inome attributable to the employment of that individual. (4) Subsetions (1) to (3) shall be onstrued together with setions A108 to C E108 Returns (1) If a orporate taxpayer () makes any loan or makes an advane of money and the advane or loan falls within setion A108(1); or reeives repayment of suh a loan or advane; or releases or writes off the whole or part of a debt under suh a loan or advane, it shall submit a return of the transation to the Assessor. 530 (2) A return under this setion shall be submitted to the Assessor with the return of inome under setion 66 of this At. (3) A orporate taxpayer that fails to submit a return under this setion is guilty of an offene and is liable on summary onvition to a fine not exeeding 5, (4) In proeedings against a person for an offene under this setion it shall be a defene for him to show that he took all reasonable steps and exerised all due diligene to avoid ommitting the offene. (5) If an offene under this setion ommitted by a body orporate is proved to have been ommitted with the onsent or onnivane of, or to be attributable to neglet on the part of, a diretor, manager, seretary or other similar offier of the body orporate or a person who was purporting to at in suh a apaity, he, as well as the body orporate, is guilty of the offene and liable to be proeeded against and punished aordingly. (6) Where the affairs of a body orporate are managed by its members, subsetion (5) applies in relation to the ats and defaults of a member in onnetion with his funtions of management as if he were a diretor of the body orporate. 532 Definitions 533 F108 Partiipator (1) In setions A108 to J108 AT 3 of 1970 Page 159

160 Setion 107 Inome Tax At 1970 partiipator, in relation to any orporate taxpayer, means a person having a share or interest in the apital or inome of the orporate taxpayer and, without prejudie to the generality of the foregoing, inludes any person who possesses, or is entitled to aquire, share apital or voting rights in the orporate taxpayer; 534 any loan reditor of the orporate taxpayer 535 ; () (d) any person who possesses, or is entitled to aquire, a right to reeive or partiipate in distributions of the orporate taxpayer or any amounts payable by the orporate taxpayer (in ash or in kind) to loan reditors by means of premium on redemption 536 ; and any person who is entitled to seure that inome or assets (whether present or future) of the orporate taxpayer will be applied diretly or indiretly for suh person s benefit (2) Referenes in subsetion (1) to being entitled to do anything apply where a person is entitled to do it at a future date or will at a future date be entitled to do it. (3) Subsetion (1) is without prejudie to any partiular provision of setions A108 to J108 requiring a partiipator in one orporate taxpayer to be treated as being also a partiipator in another orporate taxpayer G108 Assoiate (1) In setions A108 to J108, but subjet to subsetions (2) and (3), assoiate, in relation to a partiipator, means () any relative or partner of the partiipator, the trustee or trustees of any settlement in relation to whih the partiipator is, or any relative (living or dead) of the partiipator is or was, a settlor, and where the partiipator is interested in any shares or obligations of the orporate taxpayer whih are subjet to any trust or are part of the estate of a deeased person, any other person interested in those shares or obligations, and has a orresponding meaning in relation to a person other than a partiipator 541. (2) In subsetion (1), relative means spouse, ivil partner, anestor, lineal desendant, brother or sister. 542 (3) Subsetion (1)() shall not apply so as to make an individual an assoiate as being entitled or eligible to benefit under a trust if the trust relates exlusively to a olletive investment sheme within the meaning of the Colletive Investment Shemes At 2008; or 543 Page 160 AT 3 of 1970

161 Inome Tax At 1970 Setion 107 if the trust is exlusively for the benefit of the employees, or the employees and diretors, of the orporate taxpayer or their dependants (and not wholly or mainly for the benefit of the diretors or their relatives) and the individual in question is not (and ould not as a result of the operation of the trust beome), either on his or her own or with his or her relatives, the benefiial owner of more than 5 per ent of the ordinary share apital of the orporate taxpayer, 544 and, in applying subparagraph, any haritable trusts whih may arise on the failure or determination of other trusts shall be disregarded. 545 H108 Diretor In setions A108 to J108, but subjet to subsetion (2), diretor inludes any person () oupying the position of diretor by whatever name alled, in aordane with whose diretions or instrutions the diretors are austomed to at, and who is a manager of the orporate taxpayer or otherwise onerned in the management of the orporate taxpayer s trade or business I108 Assoiated orporate taxpayer 548 (1) For the purposes of setions A108 to J108, a orporate taxpayer shall be treated as another orporate taxpayer s assoiated orporate taxpayer at a partiular time if, at that time or at any time within one year previously, one of the two ompanies has ontrol of the other orporate taxpayer, or both ompanies are under the ontrol of the same person or persons. 549 (2) For the purposes of setions A108 to J108, a person shall be taken to have ontrol of a orporate taxpayer if suh person exerises, or is able to exerise or is entitled to aquire, ontrol, whether diret or indiret, over the orporate taxpayer s affairs, and in partiular, but without prejudie to the generality of the foregoing, if suh person possesses or is entitled to aquire the greater part of the share apital or issued share apital of the orporate taxpayer or of the voting power in the orporate taxpayer 550 ; suh part of the issued share apital of the orporate taxpayer as would, if the whole of the inome of the orporate taxpayer were distributed among the partiipators (without regard to any rights whih suh person or any other person has as a loan reditor), AT 3 of 1970 Page 161

162 Setion 107 Inome Tax At 1970 () entitle suh person to reeive the greater part of the amount so distributed 551, or suh rights as would, in the event of the winding up of the orporate taxpayer or in any other irumstanes, entitle suh person to reeive the greater part of the assets of the orporate taxpayer whih would then be available for distribution among the partiipators (3) Where 2 or more persons together satisfy any of the onditions of subsetion (2), they shall be taken to have ontrol of the orporate taxpayer. 554 (4) For the purposes of subsetion (2), a person shall be treated as entitled to aquire anything whih suh person is entitled to aquire at a future date or will at a future date be entitled to aquire. (5) For the purposes of subsetions (2) and (3), there shall be attributed to any person any rights or powers of a nominee for suh person, that is, any rights or powers whih another person possesses on suh person s behalf or may be required to exerise on suh person s diretion or behalf. (6) For the purposes of subsetions (2) and (3), there may also be attributed to any person all the rights and powers of () (d) any orporate taxpayer of whih suh person has, or suh person and assoiates of suh person have, ontrol, 555 any 2 or more ompanies of whih suh person has, or suh person and assoiates of suh person have, ontrol, 556 any assoiate of suh person, or any 2 or more assoiates of suh person, inluding the rights and powers attributed to a orporate taxpayer or assoiate under subsetion (5) J108 Loan reditor In setions A108 to J108, loan reditor, in relation to a orporate taxpayer, means a reditor in respet of any debt inurred by the orporate taxpayer for (i) (ii) (iii) any money borrowed or apital assets aquired by the orporate taxpayer, any right to reeive inome reated in favour of the orporate taxpayer, or onsideration the value of whih to the orporate taxpayer was (at the time when the debt was inurred) substantially less than the amount of the debt (inluding any premium on the debt), 559 or Page 162 AT 3 of 1970

163 Inome Tax At 1970 Setion 108 any redeemable loan apital issued by the orporate taxpayer Penalties 108 Failing to deliver a return or making untrue return [1946/103] (1) Every person required by this At to make or deliver any return or statement in writing or to omply with any notie or regulation made by the Assessor, or to give any ertifiate, who fails or refuses to do so in the time and manner required by this At, or makes or delivers an untrue return, statement, or ertifiate as to any of the matters required by this At, shall be guilty of an offene against this At. (2) If any person is onvited of an offene under subsetion (1) of this setion in respet of a failure to deliver any return or statement or to omply with any notie or regulation made by the Assessor, or to give any ertifiate, the ourt may order that person to take suh ation as is neessary to retify suh failure Obstruting offiers [1946/104] Every person who assaults, molests, obstruts, threatens, or hinders any person employed in the exeution of any duty under or by virtue of this At shall be guilty of an offene against this At. 110 False statements made to obtain allowanes [1946/105] If any person, for the purpose of obtaining any allowane, redution, rebate, relief or repayment in respet of inome tax, either for himself or for any other person, or in any return made with referene to inome tax, knowingly makes any false statement or false representation, he shall be guilty of an offene against this At. 111 Fraudulent onversion of property or making fraudulent statements [1946/106] (1) Where a person who ought to be harged with inome tax, as direted by this At, is not, or annot be duly assessed and harged by reason that he has fraudulently hanged his plae of residene or fraudulently onverted or fraudulently released, assigned, or onveyed any of his property; or AT 3 of 1970 Page 163

164 Setion 111 Inome Tax At 1970 () (d) (e) fraudulently or negligently made or delivered any statement or return whih is inorret; or fraudulently onverted any of his property, whih was hargeable, by altering any seurity relating thereto, or by fraudulently rendering it temporarily unprodutive, in order not to be harged for the same or any part thereof; or been guilty of any falsehood, wilful neglet, fraud, ovin, art, or ontrivane whatsoever; or fraudulently or negligently failed to make or deliver any return whih is required to be made or delivered by this At, 563 suh person shall, on proof thereof to the Assessor, be assessed and harged double the amount or, in the ase of fraud, treble the amount of the harge whih ought to have been made upon him, and he shall have a like right of appeal as provided by this At in the ase of ontested assessments: Provided that, if any harge has been made, but that harge is less than the harge whih ought to have been made, suh person shall be assessed and harged, over and above the former harge, double the amount or, in the ase of fraud, treble the amount of the differene between the harge whih was made and the harge whih ought to have been made, suh amount to be added to the assessment. 564 (2) A person who knowingly and wilfully aids, abets, assists, inites, or indues another person to make or deliver a false or fraudulent aount, statement, or delaration, of or onerning any profits or gains hargeable, or the yearly rent or value of any lands, tenements, or hereditaments, or any matters affeting any suh rent or value, shall be guilty of an offene against this At. (3) The Assessor may, if he thinks fit, authorise the remission of any harge or portion of a harge payable under this setion. 565 (4) An assessment and harge under subsetion (1) above may be made at any time A Interest on overdue tax 567 (1) Any tax harged by any assessment to inome tax under the Inome Tax Ats shall arry interest at the presribed rate from the relevant date until payment. 568 (1A) For the purposes of subsetion (1), the relevant date in respet of a non-orporate taxpayer who has failed to pay the full amount required to be paid under setion 96B by 6 January in the year to whih the payment relates, is 6 January in that year; 569 Page 164 AT 3 of 1970

165 Inome Tax At 1970 Setion 111 () in respet of a non-orporate taxpayer who has not made and delivered a return under this At by 5 April in the year following the year of assessment to whih the return relates, is the date on whih the tax beomes due and payable; in all other ases, is the date on whih the tax beomes due and payable, whihever is the sooner. 570 (2) In subsetion (1), the words tax harged by any assessment to inome tax shall inlude an amount assessed and harged under setion 111(1) of this At. (3) Interest payable under this setion shall be paid without any dedution of inome tax and shall not be allowed as a dedution in omputing any inome, profits or losses for any inome tax purposes. (4) A ertifiate of the Assessor that interest is payable under this setion and that payment of the interest has not been made, shall be suffiient evidene that the sum mentioned in the ertifiate is unpaid and is due to the Assessor. (5) The Assessor may, if he thinks fit, authorise the remission of any amount of interest payable under this setion. (6) A ertifiate under this setion shall be deemed to be authenti, and no proof shall be required of the signature or of the offiial harater of the person signing the same as Assessor. (7) Interest payable under this setion shall be reoverable as a debt due to the Assessor from the person by whom the tax, in respet of whih interest is harged, is payable. (8) This setion extends to assessments notwithstanding that they were made before the date on whih this setion omes into operation or were made for years of assessment whih have ended before that date, but interest shall not be treated as having begun to run under this setion from any date before this setion omes into operation. (9) In subsetion (1), the presribed rate means the rate of interest presribed by order of the Treasury for the purposes of that subsetion and the Treasury may presribe a different rate of interest (to be known as the surharge rate ) in respet of ases to whih subsetion (1A) applies. 571 (10) An order under subsetion (9) shall be laid before Tynwald. (11) Interest harged under this setion shall not be treated as a debt due to the Crown or to any person on behalf of the Crown for the purposes of setion 3 of the Preferential Payments At AT 3 of 1970 Page 165

166 Setion 111 Inome Tax At B Interest on tax reovered to make good loss due to tax-payer s default (1) This setion applies where an assessment has been made for the purpose of making good a loss of tax wholly or partly attributable to the fraud, wilful default or neglet of any person. (2) The tax harged by the assessment, or as the ase may be suh part of the assessment as orresponds to the part so attributable, shall arry interest under setion 111A from in the ase of a non-orporate taxpayer, 6 January following the year of assessment to whih the assessment relates until payment; and in the ase of a orporate taxpayer, the day following the expiry of 12 months from the end of the aounting period to whih the assessment relates. 573 Tax return defaulters - ivil penalties C Initial default (1) If, by the last day on whih a non-orporate taxpayer is required in aordane with setion 62(1) or (4) or setion 62A to make and deliver a return in respet of any year of assessment or part of a year of assessment, the non-orporate taxpayer has not made and delivered that return, the non-orporate taxpayer shall be liable to a ivil penalty. (2) If a non-orporate taxpayer who is liable to a ivil penalty under subsetion (1) subsequently delivers a return; and the amount of tax assessed as due and payable is less than the amount of the penalty, then the amount of the penalty shall be a sum equal to the amount of tax assessed as due and payable D Extended default (1) If a non-orporate taxpayer has not made and delivered () a return as required by setion 62(1) before the expiry of the period of 12 months immediately following the end of the year of assessment to whih the return relates; or a return as required by setion 62(4) before the expiry of the period of 12 months immediately following the date on whih a notie under that setion was served by the Assessor; or a return as required by setion 62A before the expiry of the period of 12 months immediately following the date on whih the taxpayer eases to be regarded as resident in the Isle of Man, Page 166 AT 3 of 1970

167 Inome Tax At 1970 Setion 111 the non-orporate taxpayer shall be liable to a ivil penalty. (2) The penalty under this setion is additional to any penalty under setion 111C E Mitigation of penalties under setions 111C and 111D (1) Where a person is liable to a penalty under setion 111C or 111D the Assessor or, on appeal, the Commissioners may redue the penalty to suh amount (inluding nil) as he or they think proper. (2) In the ase of a penalty redued by the Assessor under subsetion (1), the Commissioners, on an appeal relating to the penalty, may anel the whole or any part of the redution made by the Assessor. (3) The Assessor or the Commissioners shall not be entitled to take into aount in exerising their powers under this setion () the insuffiieny of the funds available to any person for paying any inome tax due or for paying the amount of the penalty; the fat that there has, in the ase in question or in that ase taken with any other ases, been no or no signifiant loss to the revenue; the fat that the person liable to the penalty or a person ating on his behalf has ated in good faith F Setions 111C to 111E: supplementary (1) A penalty under setion 111C or 111D shall not arise if the non-orporate taxpayer satisfies the Assessor or, on appeal, the Commissioners that there is a reasonable exuse for his having failed to make and deliver the return. (2) For the purpose of subsetion (1) an insuffiieny of funds to pay any inome tax due is not a reasonable exuse; and where reliane is plaed on any other person to perform any task, neither the fat of that reliane nor any dilatoriness on the part of the person relied upon is a reasonable exuse. (3) Where by reason of having failed to make and deliver a return a nonorporate taxpayer is onvited of an offene under setion 108 of this At, the failure shall not also give rise to a penalty under setion 111C or 111D G Amount of penalty (1) The amount of the penalty under setions 111C(1) and 111D shall be 50 or suh other sum as the Treasury may presribe by order. AT 3 of 1970 Page 167

168 Setion 111 Inome Tax At 1970 (2) An order under subsetion (1) shall not ome into operation unless it is approved by Tynwald H Colletion of penalty (1) A penalty under setion 111C or 111D shall be reoverable as a debt due to the Assessor from the person in respet of whom the return should have been made. (2) A ertifiate of the Assessor that a penalty is payable under setion 111C or 111D and that payment of the penalty has not been made, shall be suffiient evidene that the sum mentioned in the ertifiate is unpaid and is due to the Assessor. (3) A ertifiate under this setion shall be deemed to be authenti, and no proof shall be required of the signature or of the offiial harater of the person signing the same as Assessor. (4) A penalty under setion 111C or 111D shall be treated as a debt due to the Crown or to any person on behalf of the Crown for the purposes of setion 3 of the Preferential Payments At (5) A penalty payable under setion 111C or 111D shall be paid without any dedution of inome tax and shall not be allowed as a dedution in omputing any inome, profits or losses for any inome tax purposes I Appeals (1) An appeal shall lie to the Commissioners with respet to any liability to a penalty under setions 111C or 111D; or a deision of the Assessor under setion 111E, and the Commissioners may onfirm, vary or reverse the penalty or, as the ase may be, deision. (2) The proedure with respet to an appeal under subsetion (1) shall, with the neessary modifiations, be the same as that for an appeal against an assessment J Criminal offene: failure to make return (1) If a non-orporate taxpayer has not made and delivered a return as required by setion 62(1) before the expiry of the period of 24 months immediately following the end of the year of assessment to whih the return relates; or a return as required by setion 62(4) before the expiry of the period of 24 months immediately following the date on whih a notie under that setion was served by the Assessor; or Page 168 AT 3 of 1970

169 Inome Tax At 1970 Setion 112 () a return as required by setion 62A before the expiry of the period of 24 months immediately following the date on whih the taxpayer eases to be regarded as resident in the Isle of Man, that non-orporate taxpayer shall be guilty of an offene and shall be liable on summary onvition to a fine not exeeding 5,000 or ustody for a term not exeeding 6 months, or to both. (2) If any non-orporate taxpayer is onvited of an offene under subsetion (1), the ourt may order the non-orporate taxpayer to take suh ation as is neessary to retify suh failure Penalty where no other punishment is provided [1946/107] Every person who shall be guilty of an offene against this At, or of ontravention of any regulations made under this At shall be liable, on summary onvition, where no other punishment is provided, to a penalty not exeeding 5,000 and in default of payment to imprisonment for any term not exeeding six months. Corporate taxpayers - ivil penalties 112A Initial default If, by the day following the expiry of 12 months from the end of the aounting period, a orporate taxpayer has not made and delivered a return as required by setion A66, the orporate taxpayer shall be liable to a ivil penalty B Extended default (1) If a orporate taxpayer has not made and delivered a return as required by setion A66 by the day following the expiry of 18 months from the end of the aounting period the orporate taxpayer shall be liable to a ivil penalty. (2) The penalty under this setion is additional to any penalty under setion 112A C Mitigation of penalties under setions setion 112A or 112B (1) Where a orporate taxpayer is liable to a penalty under setion 112A or 112B the Assessor or, on appeal, the Commissioners may redue the penalty to suh amount (inluding nil) as they think proper. (2) In the ase of a penalty redued by the Assessor under subsetion (1), the Commissioners, on an appeal relating to the penalty, may anel the whole or any part of the redution made by the Assessor. AT 3 of 1970 Page 169

170 Setion 112 Inome Tax At 1970 (3) The Assessor or the Commissioners shall not be entitled to take into aount in exerising their powers under this setion () the insuffiieny of the funds available to any person for paying any inome tax due or for paying the amount of the penalty; 585 the fat that there has, in the ase in question or in that ase taken with any other ases, been no or no signifiant loss to the revenue; the fat that the orporate taxpayer liable to the penalty or a person ating on that taxpayer s behalf has ated in good faith D Setion 112A or 112B: supplementary (1) A penalty under setion 112A or 112B shall not arise if the orporate taxpayer satisfies the Assessor or, on appeal, the Commissioners that there is a reasonable exuse for having failed to make and deliver the return. (2) For the purpose of subsetion (1) an insuffiieny of funds to pay any inome tax due is not a reasonable exuse; and where reliane is plaed on any other person to perform any task, neither the fat of that reliane nor any dilatoriness on the part of the person relied upon is a reasonable exuse. (3) Where by reason of having failed to make and deliver a return a orporate taxpayer is onvited of an offene under setion 112I of this At, the failure shall not also give rise to a penalty under setion 112A or 112B E Amount of penalty (1) Subjet to setion 112F, the amount of the penalty under setion 112A or 112B shall be suh sum as the Treasury may presribe by order. (2) An order under subsetion (1) shall not ome into operation unless it is approved by Tynwald F Amount of penalty: suessive defaults (1) The amount of the penalty under setion 112A or 112B is inreased to suh sum as the Treasury may presribe by order where the orporate taxpayer has been liable to a penalty under either or both of those setions in respet of the two aounting periods immediately preeding the aounting period in respet of whih the amount under this setion is to be applied. (2) An order under subsetion (1) shall not ome into operation unless it is approved by Tynwald. 589 Page 170 AT 3 of 1970

171 Inome Tax At 1970 Setion G Penalty notie (1) Subjet to setions 112C and 112D, where the Assessor is satisfied on reasonable grounds that a penalty is or may be due under setion 112A or 112B, the Assessor may issue a penalty notie to the orporate taxpayer and the penalty speified in a penalty notie shall be reoverable aordingly. (2) The Assessor shall be treated as having reasonable grounds for the purposes of subsetion (1) if the Assessor has reason to believe that the default referred to in either setion 112A or 112B has arisen or for any reason is likely to arise. (3) A penalty notie under this setion shall have the same effet as a ertifiate under setion 112H H Colletion of penalty (1) A penalty under setion 112A or 112B shall be reoverable as a debt due to the Assessor from the orporate taxpayer in respet of whom the return should have been made. (2) A ertifiate of the Assessor that a penalty is payable under setion 112A or 112B and that payment of the penalty has not been made, shall be suffiient evidene that the sum mentioned in the ertifiate is unpaid and is due to the Assessor. (3) A ertifiate under this setion shall be deemed to be authenti, and no proof shall be required of the signature or of the offiial harater of the person signing the same as Assessor. (4) A penalty under setion 112A or 112B shall be treated as a debt due to the Crown or to any person on behalf of the Crown for the purposes of setion 3 of the Preferential Payments At (5) A penalty payable under setion 112A or 112B shall be paid without any dedution of inome tax and shall not be allowed as a dedution in omputing any inome, profits or losses for any inome tax purposes I Criminal offene: failure to make return (1) If a orporate taxpayer has not made and delivered a return as required by setion A66 within 24 months of the end of the relevant aounting period, the taxpayer shall be guilty of an offene and shall be liable on summary onvition to a fine not exeeding 5,000 or ustody for a term not exeeding 6 months, or to both. (2) If any non-orporate taxpayer is onvited of an offene under subsetion (1), the ourt may order the non-orporate taxpayer to take suh ation as is neessary to retify suh failure. AT 3 of 1970 Page 171

172 Setion 113 Inome Tax At 1970 (3) Subsetions (4) to (6) apply where an offene under subsetion (1) is ommitted by a orporate taxpayer and it is proved that the offene was ommitted with the onsent or onnivane of an offier of the orporate taxpayer, or was attributable to neglet on the part of an offier of the orporate taxpayer. (4) The offier, as well as the orporate taxpayer, shall be guilty of the offene. (5) Where an offier is onvited of an offene under subsetion (1) by virtue of subsetion (4), that offier shall be liable on summary onvition to a fine not exeeding 5,000 or ustody for a term not exeeding 6 months, or to both. (6) In this setion offier inludes () a diretor, manager or seretary, a person purporting to at as a diretor, manager or seretary, if the affairs of the body are managed by its members, a member J Appeals (1) An appeal shall lie to the Commissioners with respet to any liability to a penalty under setion 112A or 112B; or a deision of the Assessor under setion 112C, and the Commissioners may onfirm, vary or reverse the penalty or, as the ase may be, deision. (2) The proedure with respet to an appeal under subsetion (1) shall, with the neessary modifiations, be the same as that for an appeal against an assessment Proeedings for offenes [1946/108] Proeedings for an offene against this At or for a ontravention of any regulation made under this At shall be taken in the name of the Treasury or the Assessor, or of any person authorised thereto in writing by the Treasury or the Assessor, and the mode or proedure shall be aording to any law for the time being in fore regulating the proedure for offenes punishable on summary onvition, but notwithstanding any other enatment to the ontrary a omplaint may be made at any time within a period of six years from the ommission of the offene. 594 Page 172 AT 3 of 1970

173 Inome Tax At 1970 Setion Onus of proof on defendant [1946/109] Whenever in any proeedings under this At the defendant laims that he has duly paid inome tax, or made or delivered any return or statement, or performed any duty as required by this At, or by any regulation made under this At, the onus of proving suh laim shall be on the defendant. 115 Onus of disproving guilty knowledge on defendant [1946/110] On the hearing of any information or omplaint for an offene under this At, or any regulations made under this At, it shall not be neessary for a onvition to prove guilty knowledge or that the at harged was ommitted knowingly and the onus of disproving the same shall be on the defendant. Misellaneous 116 Servie of douments (1) Subjet to subsetion (2) below, where any notie or other douments from the Treasury, the Assessor or any revenue offier is to be served under the Inome Tax Ats, and no other method of servie is presribed, the same may be served by any one of the methods speified in setion 41(2) of the Interpretation At (2) Any notie or other doument from the Treasury, the Assessor or any revenue offier whih is to be served under the said Ats may be sent by prepaid registered post or reorded delivery to the last known plae of abode or business of the person to whom it is to be sent, or, in the ase of an assoiation, to the registered or prinipal offie thereof, and suh servie shall be deemed to have been effeted at the time at whih the paket would have been delivered in the ordinary ourse of post. 117 Failure of Assessor to at not to invalidate subsequent ation [1946/112] Should the Assessor fail to hold a meeting or to make any appointment or to do any other at required by the Inome Tax Ats, for the time being, within the time presribed by suh Ats, he shall so do as soon as may be after the expiration of that time, and any meeting so held, or appointment so made, or at so performed, shall be valid and effetual as if done within the presribed time. 118 Effet of mistakes [1946/113] (1) An assessment, harge, or other proeeding whih purports to be made in pursuane of the Inome Tax Ats, shall not be quashed or deemed to AT 3 of 1970 Page 173

174 Setion 118 Inome Tax At 1970 be void or voidable for want of form, or be affeted by reason of a mistake, defet, or omission therein, if the same is in substane and effet in onformity with, or aording to, the intent and meaning of the Inome Tax Ats, and if the person or property harged or intended to be harged or affeted thereby is designated therein aording to ommon intent and understanding. (2) An assessment or harge made upon an assessment shall not be impeahed or affeted by reason of a mistake therein as to (i) (ii) (iii) the name or surname of the person liable; the desription of any profits or property; or the amount of tax harged; by reason of any variane between the notie and the ertifiate or harge or assessment, provided the same shall ontain in substane and effet the partiulars on whih any harge or assessment is made. 118A Exlusion of extended limitation period (1) Setion 30(1)() of the Limitation At 1984 (postponement of limitation period) does not apply in relation to a mistake of law relating to a taxation matter under the Inome Tax Ats. (2) Subsetion (1) has effet in relation to ations brought on or after 1 January (3) If, before 1 January 2005, an ation is brought in relation to whih a defene of limitation would have been available if subsetion (1) had been in fore; or a laim is made on or after that date that by virtue of setion 32 of the Limitation At 1984 is treated as an ation brought before that date and that laim would not have been allowed if subsetion (1) had been in fore, the ation (or so muh of it as relates to a ause of ation in respet of whih a defene of limitation would have been available or, as the ase may be, a laim would not have been allowed) shall be deemed to be disontinued on the passing of this At and any payment made by the Treasury or the Assessor in or towards meeting their liability in the ation (or so muh of the ation as so relates) may be reovered by them (with interest from the date of the payment). (4) Nothing in this setion affets a laim made before the 1 January (5) The provisions of this setion apply to any ation or laim for relief from the onsequenes of a mistake of law, whether expressed to be brought Page 174 AT 3 of 1970

175 Inome Tax At 1970 Setion 119 on the ground of mistake or on some other ground (suh as unlawful demand or ultra vires at). (6) This setion shall be onstrued as one with the Limitation At Power of Tynwald to vary rates of allowanes, et, by resolution [1968/9] (1) Tynwald may, from time to time, in respet of any inome tax year, by resolution vary any sums of money speified in this At, inluding the alulation of rates of allowanes, dedutions and redutions, and any suh variation shall ontinue to have effet in every subsequent inome tax year until the same may be further varied by the resolution of Tynwald. (2) to (4) [Repealed] A Meaning of ontrol in ertain ontexts For the purposes of, and subjet to, the provisions of the Inome Tax Ats whih apply this setion, ontrol, in relation to a body orporate, means the power of a person to seure by means of the holding of shares or the possession of voting power in or in relation to that or any other body orporate; or by virtue of any powers onferred by the artiles of assoiation or other doument regulating that or any other body orporate, that the affairs of the first-mentioned body orporate are onduted in aordane with the wishes of that person, and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the inome, of the partnership B Territorial sea [P1988/1/830] (1) For the avoidane of doubt, it is delared that the territorial sea adjaent to the Isle of Man is for all purposes of inome tax part of the Isle of Man. (2) Any profit from exploration or exploitation ativities or rights in the territorial sea adjaent to the Isle of Man shall be treated for the purposes of inome tax as profits from ativities or property in the Isle of Man. (3) Any profits arising to any person not resident in the Isle of Man from exploration or exploitation ativities or rights shall be treated for the purposes of inome tax as profits of a trade arried on by that person in the Isle of Man through a branh or ageny. (4) Without prejudie to the generality of subsetion (1), any remuneration from an offie or employment in respet of duties performed in the territorial sea adjaent to the Isle of Man in onnetion with exploration AT 3 of 1970 Page 175

176 Setion 119 Inome Tax At 1970 or exploitation ativities shall be treated for the purposes of inome tax as remuneration in respet of duties performed in the Isle of Man. (5) Shedule 2A shall have effet. (6) In this setion branh or ageny means any fatorship, ageny, reeivership, branh or management; exploration or exploitation ativities means ativities arried on in onnetion with the exploration or exploitation of so muh of the sea bed and subsoil and their natural resoures as is situated in the Isle of Man and the territorial sea adjaent to it; exploration or exploitation rights means rights to assets to be produed by exploration or exploitation ativities or to interests in or to the benefit of suh assets; remuneration has the same meaning as in setion 2C; trade inludes every trade, manufature, adventure or onern in the nature of trade C Conneted persons [P1988/1/839] (1) For the purposes of, and subjet to the Inome Tax Ats whih apply this setion, any question whether a person is onneted with another shall be determined in aordane with this setion (any provision that one person is onneted with another being taken to mean that they are onneted with one another). (2) A person is onneted with an individual if that person is the individual s spouse or ivil partner, or is a relative, or the wife or husband of a relative, of the individual or of the individual s wife or husband. 602 (3) A person, in his apaity as trustee of a settlement, is onneted with any individual who in relation to the settlement is a settlor, with any person who is onneted with suh an individual and with a body orporate whih, under subsetion (9) is deemed to be onneted with that settlement. (4) Exept in relation to aquisitions and disposals of partnership assets pursuant to bona fide ommerial arrangements, a person is onneted with any person with whom he is in partnership, and the spouse or ivil partner or relative of any individual with whom he is in partnership. 603 (5) A ompany is onneted with another ompany if the same person has ontrol of both, or a person has ontrol of one and persons onneted with him, or he and persons onneted with him, have ontrol of the other; or Page 176 AT 3 of 1970

177 Inome Tax At 1970 Setion 119 if a group of two or more persons has ontrol of eah ompany, and the groups either onsist of the same persons or ould be regarded as onsisting of the same persons by treating (in one or more ases) a member of either group as replaed by a person with whom he is onneted. (6) A ompany is onneted with another person if that person has ontrol of it or if that person and persons onneted with him together have ontrol of it. (7) Any two or more persons ating together to seure or exerise ontrol of a ompany shall be treated in relation to that ompany as onneted with one another and with any person ating on the diretions of any of them to seure or exerise ontrol of the ompany. (8) In this setion ompany inludes any body orporate or uninorporated assoiation, but does not inlude a partnership, and this setion shall apply in relation to any unit trust sheme as if the sheme were a ompany and as if the rights of the unit holders were shares in the ompany; ontrol shall be onstrued in aordane with setion 119A; relative means brother, sister, anestor or lineal desendant; settlement inludes any disposition, trust, ovenant, agreement or arrangement; settlor, in relation to a settlement, means any person by whom the settlement was made; unit trust sheme has the same meaning as in the Colletive Investment Shemes At (9) In this setion, a body orporate is onneted with a settlement in any year of assessment if at any time in that year it is ontrolled (as defined by setion 119A) by the trustees of the settlement D Power to pay rewards The Treasury may at its disretion pay rewards in respet of any servie whih appears to it to merit reward rendered to it or the Assessor by any person in relation to any matter under the Inome Tax Ats E Beginning and ending of aounting periods [1988/1/12(2), (3), (5)-(7)] (1) An aounting period of a orporate taxpayer begins whenever the orporate taxpayer, not then being within the harge to inome tax, omes within it, whether by the orporate taxpayer AT 3 of 1970 Page 177

178 Setion 119 Inome Tax At 1970 beoming resident in the Island or aquiring a soure of inome, or otherwise; or an aounting period of the orporate taxpayer ends without the orporate taxpayer then easing to be within the harge to inome tax. (2) An aounting period of a orporate taxpayer ends on the first ourrene of any of the following () (d) (e) the expiration of 12 months from the beginning of the aounting period; an aounting date of the orporate taxpayer or, if there is a period for whih the orporate taxpayer does not make up aounts, the end of that period; the orporate taxpayer beginning or easing to trade or to be, in respet of the trade or (if more than one) of all the trades arried on by it, within the harge to inome tax; the orporate taxpayer beginning or easing to be resident in the Island; the orporate taxpayer easing to be within the harge to inome tax. (3) Subjet to subsetion (4), if a orporate taxpayer arrying on more than one trade makes up aounts of any of them to different dates, and does not make up general aounts for the whole of the orporate taxpayer s ativities subsetion (2) applies with referene to the aounting date of suh one of the trades as the Assessor may determine; but if the aounting date of eah of the trades is more than 12 months from the beginning of the aounting period, the Assessor may make an assessment on the orporate taxpayer in respet of suh period, not exeeding 12 months, as appears to the Assessor to be appropriate. (4) If the Assessor is of the opinion on reasonable grounds, that no appropriate date an be determined for the purposes of subsetion (3), the Assessor may make an assessment on the orporate taxpayer in respet of suh period, not exeeding 12 months, as appears to the Assessor to be appropriate. (5) If a orporate taxpayer is wound up, its aounting period ends and a new one begins with the ommenement of the winding up, and eah subsequent aounting period does not end otherwise than by the expiration of 12 months from its beginning; or the ompletion of the winding up, and subsetions (1) to (3) will not apply in suh a ase. Page 178 AT 3 of 1970

179 Inome Tax At 1970 Setion 119 (6) For the purposes of subsetion (5), winding up ommenes () on the passing by the orporate taxpayer of a resolution for the winding up of the taxpayer; or on the presentation of a winding up petition if no suh resolution has previously been passed and a winding up order is made on the petition; or on the doing of any other at for a like purpose in the ase of a winding up otherwise than under the Companies Ats 1931 to (7) A orporate taxpayer resident in the Island, if not otherwise within the harge to inome tax, shall be treated as oming within the harge to inome tax at the time when it ommenes to arry on business. (8) Where a orporate taxpayer is the surviving ompany in respet of a merger whih has taken plae under Part X of the Companies At 2006, the aounting period in respet of that orporate taxpayer ends and a new aounting period begins upon the issue of a ertifiate of merger under setion 154 of the 2006 At. In this subsetion, merger and surviving ompany eah has the meaning given by setion 152 of the Companies At F Powers of Assessor in doubtful ases (1) If the Assessor is of the opinion that the beginning or end of any aounting period of a orporate taxpayer is unertain, the Assessor may make an assessment on the orporate taxpayer in respet of suh period, not exeeding 12 months, as appears to the Assessor to be appropriate. (2) The period under subsetion (1) will be treated for all purposes as an aounting period of the orporate taxpayer unless either on further fats oming to the Assessor s knowledge, the Assessor sees fit to revise it; or on an appeal against the assessment in respet of some other matter the orporate taxpayer shows the true aounting periods. (3) If on an appeal against an assessment under this setion the orporate taxpayer shows the true aounting periods, the assessment appealed against will, as regards the period to whih it relates, have effet as an assessment or assessments for the true aounting periods, and there may be made suh other assessments for any suh periods or any of them as might have been made at the time when the assessment appealed against was made. 609 AT 3 of 1970 Page 179

180 Setion 120 Inome Tax At G Publi douments to take aount of ivil partnerships (1) A referene in a publi doument made under the Inome Tax Ats to marriage is to be onstrued as inluding a referene to ivil partnership. (2) In partiular () (d) (e) a referene to a husband, wife, spouse or married person is to inlude a referene to a ivil partner; a referene to a widow or widower is to inlude a referene to a surviving ivil partner; a referene to a former husband, former wife or former spouse is to inlude a referene to a former ivil partner; a referene to a married ouple is to inlude a referene to the partners of a ivil partnership; and a referene to marrying or getting married is to inlude a referene to forming a ivil partnership. (3) In this setion, ivil partnership and ivil partner eah has the same meaning as in setion 1 of the Civil Partnership At Definitions [1946/3] In this At, if not inonsistent with the ontext, the following expressions shall have the meaning hereafter respetively assigned to them, that is to say 2006 ompany has the meaning given in setion 2N; At ompany has the meaning given in setion 2N(3); 612 assessment and assessed shall, in relation to orporate taxpayers, be onstrued in aordane with setion 96(2); 613 Assessor means the person being the Assessor of Inome Tax immediately prior to the ommenement of this At or who is subsequently appointed Assessor of Inome Tax under the provisions of setion one hundred and five of this At; assoiation means any ompany, orporate or uninorporate, fraternity, fellowship, soiety, or assoiation of persons; Commissioners means the Isle of Man Inome Tax Commissioners ontinued in being by setion eighty-eight of this At; orporate taxpayer means an assoiation that is a limited liability ompany; any other body orporate reated by or under a statutory provision or harter (other than a orporation sole, a Sottish firm or a limited liability partnership); (ba) a foundation within the meaning of the Foundations At 2011; 614 Page 180 AT 3 of 1970

181 Inome Tax At 1970 Setion 120 () (d) (e) (f) an investment lub; a members lub; the Isle of Man Agriultural Marketing Soiety; or suh person or lass of persons as may be speified in an order made by the Treasury for the purpose of this definition and suh an order shall not ome into operation unless it is approved by Tynwald, and inludes a reeiver or liquidator of an assoiation referred to in paragraphs to (f) when exerising that offie in respet of the assoiation in question; 615 the Governor in Counil means the Governor ating on the advie and with the onurrene of the Counil of Ministers; 616 group relief has the meaning assigned to it by paragraph 1 of Shedule 2 to the Inome Tax At 1980; 617 High Court or Court means the High Court of Justie in the Isle of Man; Inome Tax Ats means this At and any other enatment relating to inome tax; inome tax year means the year ommening on the sixth April and ending on the fifth April next following; investment ompany means an assoiation inorporated in the Isle of Man, or a body orporate resident though not inorporated in the Isle of Man, the sole or prinipal objet of business of whih is the investment of money, and whih does not bona fide engage to a substantial extent in any business, industrial or ommerial undertaking other than the investment of money, and for the purpose of this definition the expression the investment of money shall inlude the sale and purhase of investments or seurities or the under-writing of investments; Judge means a Judge of the High Court; Manx inome tax and Manx tax means inome tax payable under the Inome Tax Ats; member in relation to a orporate taxpayer, inludes a shareholder, stokholder, member or assoiate, or a benefiiary under a foundation and a person is to be treated as a member of a orporate taxpayer if that person has any legal or equitable interest in the orporate taxpayer or in any share or stok of the orporate taxpayer; 618 non-orporate taxpayer means a person that is not a orporate taxpayer; 619 person inludes any assoiation of persons, orporate or uninorporate; revenue offier means any offier so designated to be appointed from time to time under the provisions of the Inome Tax Ats; AT 3 of 1970 Page 181

182 Setion 121 Inome Tax At 1970 taxable inome means in the ase of () an individual resident in the Isle of Man, his total inome less the allowanes (where the provisions of setion 33 of this At have been fulfilled) permitted under the Inome Tax Ats; 620 an assoiation resident in the Isle of Man, the total inome of the assoiation less (i) (ii) so muh of its inome as shall be distributed among its shareholders, stokholders, members or assoiates, as the ase may be, by way of dividend, bonus, interest or share in profits; and group relief; any other person, so muh of the total inome of that person as is under the provisions of the Inome Tax Ats, liable to Manx inome tax; 621 total inome means in relation to any individual or assoiation the total inome of that individual or assoiation from all soures, whether within or outside the Isle of Man, estimated in aordane with the provisions of the Inome Tax Ats; traded option means an option whih is for the time being quoted on a stok exhange reognised by the Assessor, or on the London International Finanial Futures Exhange; 622 Treasurer [Repealed] 623 Treasury means the Board of Tynwald alled the Treasury ;624 United Kingdom inome tax means the inome tax hargeable in aordane with the provisions of the Ats of the Imperial Parliament of the United Kingdom for the time being relating to inome tax; year of assessment means the year ommening on the sixth April and ending on the fifth April following for or in respet of whih inome tax is payable. 121 [Repealed] Short title This At may be ited as the Inome Tax At, Commenement (1) This At shall ome into operation when the Royal Assent thereto has been by the Governor announed to Tynwald and a ertifiate thereof has been signed by the Governor and the Speaker of the House of Keys. Page 182 AT 3 of 1970

183 Inome Tax At 1970 Setion 123 Appliation of At (2) This At unless where otherwise provided shall apply to the year ommening on the sixth day of April, 1969, and to eah sueeding year, but nothing in this At ontained or in enatments hereby repealed shall be deemed to affet the liability of any person to inome tax for any year preeding the said sixth day of April, 1969, or any rights, remedies, penalties or obligations arising under any enatments with respet to suh inome tax. AT 3 of 1970 Page 183

184

185 Inome Tax At 1970 Shedule 1 Shedule RETIREMENT ANNUITIES - AMOUNT OF RELIEF FOR PERSONS OVER FIFTY [Setion 50] In the ase of an individual whose age at the beginning of a year of assessment is within a range speified in the first olumn of the following table, setion 50(1A) above shall have effet for that year with the substitution for 17.5 per ent of the relevant perentage speified in the seond olumn. 51 to per ent. 56 to per ent. 61 or more 27.5 per ent. Shedule 1A 627 FORM OF WARRANT FOR DISTRAINT FOR OVERDUE INCOME TAX [Setion 98A] INCOME TAX WARRANT (This warrant is given under setion 98A of the Inome Tax At 1970) To the Coroner for...sheading I,...the Assessor of Inome Tax DIRECT that you shall enfore this warrant in the same manner as an Exeution of the High Court against... of... for tax amounting to... TOTAL interest at the rate of p.a. up to and inluding whih the said...is required to pay under the provisions of the (Inome Tax Ats) (the Company Registration Tax At 1974)* but whih, despite the demand having been made of him, he has not paid. This day of 19 *Delete whihever is inappliable. Assessor of Inome Tax [At replaed by the Non-Resident Company Duty At 1986.] AT 3 of 1970 Page 185

186 Shedule 1B Inome Tax At 1970 Shedule 1B 628 TAXATION IN RESPECT OF CARS AND FUEL [Setions 2I and 2J] Cylinder apaity of ar (in ubi entimetres) PART I - TABLE OF CASH EQUIVALENTS Cash equivalent in respet of ar for purposes of setion 2I Nil Eletri ar (regardless of ylinder apaity) 1,000 or less ,001 to 1,200 1, ,201 to 1,800 3,600 1,500 1,801 to 2,500 5,000 1,750 2,501 to 3,500 7,000 2,000 3,501 to 5,000 10,000 2,250 More than 5,000 12,000 2,500 Cash equivalent in respet of fuel for purposes of setion 2J Nil PART II - SUPPLEMENTARY PROVISIONS 1 Interpretation For the purposes of the table where a ar derives its motive power wholly from an internal ombustion engine worked by (i) (ii) a ylinder or ylinders; or a rotor or rotors, its ylinder apaity is the ylinder apaity of its engine alulated as for the purposes of the Liensing and Registration of Vehiles At 1985; and eletri ar (i) (ii) means a vehile intended for use on any publi road, where the only soure of power is eletriity, usually provided by rehargeable batteries, but may also be provided by photovoltai (solar) ells or a fuel ell; and does not inlude hybrid ars where more than one type of fuel or soure of power an be used. Page 186 AT 3 of 1970

187 Inome Tax At 1970 Shedule 2 2 Redution for periods when ar not available for use (1) If, for any part of the relevant year, the ar was unavailable, the ash equivalent of the benefit of the ar is to be redued by an amount whih bears to the full amount of the equivalent (asertained under Part I) the same proportion as the number of days in the year on whih the ar was unavailable bears to 365. (2) The ar is to be treated as being unavailable on any day if it was not made available to the employee until after that day, or it had eased before that day to be available to the employee; or it was inapable of being used at all throughout a period of not less than 30 onseutive days of whih that day was one. 3 Redution for employee paying for use of ar If in the relevant year the employee was required, as a ondition of the ar being available for the employee s private use, to pay any amount of money (whether by way of dedution from emoluments or otherwise) for that use, the ash equivalent of the benefit of the ar is to be redued (or, if already redued under paragraph 2, further redued) by the amount so paid by the employee in or in respet of the year; or if that amount exeeds the equivalent shown in the table in Part I, is nil. 4 Additional ars (1) If in any year a person is taxable under setion 2I in respet of two or more ars whih are made available onurrently, the ash equivalent in respet of eah ar derived from the table in Part I; and where appropriate, redued in aordane with paragraphs 2 and 3, is to be aggregated with the ash equivalent in respet of eah other ar. (2) If in any year a person is taxable under setion 2J in respet of fuel provided for two or more ars whih are made available onurrently, the ash equivalents derived from the table in Part I in respet of the fuel for eah of those ars are to be aggregated. Shedule 2 FORM OF DECLARATION TO BE MADE BY THE ISLE OF MAN INCOME TAX COMMISSIONERS [Setion 88(5)] AT 3 of 1970 Page 187

188 Shedule 2A Inome Tax At 1970 I, A.B. do solemnly delare that I will truly, faithfully, impartially, and honestly, aording to the best of my skill and knowledge, exeute the powers and authorities vested in me by the Inome Tax Ats for the time being of the Isle of Man, and that I will exerise the powers entrusted to me by the said Ats in suh manner only as shall appear to me neessary for the due exeution of the same; and that I will judge and determine upon all matters and things whih shall be brought before me under the said Ats, without favour, affetion, or malie, and that I will not dislose any partiular ontained in any statement, return, or other doument delivered with respet to Inome Tax, or any evidene or answer given by any person who shall be examined, or shall make affidavit or deposition, respeting the same, in pursuane of the said Ats, exept to suh persons only as shall at in the exeution of the said Ats, and where it shall be neessary to dislose the same to them for the purposes of the said Ats, or in order to, or in the ourse of, a proseution for perjury ommitted in suh examination, affidavit, or deposition. Shedule 2A 629 PETROLEUM EXPLORATION AND EXPLOITATION [Setion 119B] Information 1. The holder of any liene granted under the Petroleum At 1986 shall, if required to do so by a notie served on him by the Assessor, give to the Assessor within the time limited by the notie (whih shall not be less than 30 days) suh partiulars as may be required by the notie of transations in onnetion with ativities authorised by the liene as a result of whih any person is or might be liable to inome tax by virtue of setion 119B or otherwise under this At; and remuneration or other payments paid or payable in respet of duties or servies performed in an area in whih those ativities may be arried on under the liene and the persons to whom they were paid or are payable; and shall take reasonable steps to obtain the information neessary to enable him to omply with the notie. Colletion 2. (1) Subjet to the provisions of this Shedule, where inome tax is assessed by virtue of setion 119B on a person not resident in the Island in respet of profits from ativities authorised, or arried on in onnetion with ativities authorised, by a liene granted under the Petroleum At 1986, or profits from exploration or exploitation rights onneted with ativities so authorised or arried on, Page 188 AT 3 of 1970

189 Inome Tax At 1970 Shedule 2A then, if the inome tax remains unpaid later than 30 days after it has beome due and payable, the Assessor may serve a notie on the holder of the liene stating partiulars of the assessment, the amount remaining unpaid and the date when it beame payable, and requiring the holder of the liene to pay that amount, together with any interest due thereon under setion 111A, within 30 days of the servie of the notie. (2) Any amount whih a person is required to pay by a notie under this paragraph may be reovered from him as if it were inome tax due and duly demanded from him; and he may reover any suh amount paid by him from the person on whom the assessment was made. (3) A payment in pursuane of a notie under this paragraph shall not be allowed as a dedution in omputing any inome, profits or losses for inome tax purposes. 3. (1) Subjet to paragraphs 4 to 7, the power of the Assessor under paragraph 2 to serve a notie in respet of inome tax remaining unpaid as there mentioned shall also apply where inome tax is assessed on any person not resident in the Island as mentioned in paragraph 2(1) or but more than one liene under the Petroleum At 1986 is the basis for the assessment; or inome tax assessed on any suh person inludes, but is not limited to, inome tax assessed on him as so mentioned (whether by referene to one or to more than one suh liene); but in any suh ase the amount the holder of any liene in question may be required to pay by a notie under paragraph 2 shall be the amount of inome tax remaining unpaid under the assessment whih is attributable to the profits in respet of whih that liene was the basis for the assessment, together with a orresponding proportion of any interest due as mentioned in paragraph 2(1). (2) For the purposes of sub-paragraph (1) the amount of the inome tax remaining unpaid under the assessment whih is attributable to the profits in respet of whih any liene in question was the basis for the assessment is suh part of the total amount of that inome tax as bears to that total amount the same proportion as the proportion borne by the amount of the profits in respet of whih that liene was the basis for the assessment to the total amount of the profits in respet of whih the assessment was made. 4. Paragraph 2 does not apply in relation to the holder of any liene if the profits arose in onsequene of a ontrat made by the holder of the liene before 1 January 1995, unless he is a person onneted with the holder within the meaning of setion 119C or the ontrat was substantially varied on or after that date. 5. Where, on an appliation made by a person who will or might beome liable to inome tax whih, if remaining unpaid, ould be reovered under paragraph 2 from the holder of a liene, the Assessor is satisfied that the appliant will omply with any AT 3 of 1970 Page 189

190 Shedule 2A Inome Tax At 1970 obligations imposed on him by the Inome Tax Ats, he may issue a ertifiate to the holder of the liene exempting him from the provisions of that paragraph with respet to any inome tax payable by the appliant; and where suh a ertifiate is issued that paragraph shall not apply to any suh inome tax whih beomes due while the ertifiate is in fore or, if the ertifiate is anelled under paragraph 7, to any suh inome tax whih beomes due after the anellation of the ertifiate in respet of profits arising while the ertifiate is in fore (referred to in this Shedule as preanellation profits ). 6. (1) Paragraph 5 is subjet to this paragraph in any ase where after the anellation of a ertifiate issued to the holder of a liene under that paragraph inome tax is assessed as mentioned in paragraph 2(1) or on the person who applied for the ertifiate; and the relevant profits inlude, but are not limited to pre-anellation profits. (2) In this paragraph the relevant profits means in a ase where the amount of the inome tax remaining unpaid under the assessment whih, but for paragraph 5, the holder of the liene ould be required to pay by a notie under paragraph 2 (referred to in this paragraph as the amount otherwise appliable in his ase) is the whole of the amount remaining unpaid, all the profits in respet of whih the assessment was made; or in a ase where the amount otherwise appliable in his ase falls under paragraph 3 to be determined by referene to profits in respet of whih the liene was the basis for the assessment, the profits in question. (3) In any ase to whih this paragraph applies, the amount the holder of the liene may be required to pay by a notie under paragraph 2 shall be the amount otherwise appliable in his ase redued by the amount of the inome tax remaining unpaid under the assessment whih is attributable to the pre-anellation profits, together with a orresponding proportion of any interest due as mentioned in paragraph 2(1). (4) For the purposes of sub-paragraph (3) the amount of the inome tax remaining unpaid under the assessment whih is attributable to the pre-anellation profits is suh part of the amount otherwise appliable in the ase of the holder of the liene as bears to the whole of the amount otherwise so appliable the same proportion as the proportion borne by the amount of the pre-anellation profits to the total amount of the relevant profits. 7. The Assessor may, by notie in writing to the holder of a ertifiate issued under paragraph 5, anel the ertifiate from suh date, not earlier than 30 days after the servie of the notie, as may be speified in the notie. Page 190 AT 3 of 1970

191 Inome Tax At 1970 Shedule 3 8. (1) For the purposes of paragraphs 3 and 6 and this paragraph, profits in respet of whih an assessment is made as mentioned in paragraph 2(1) or are profits in respet of whih any liene in question was the basis for the assessment if those profits fall within paragraph 2(1) or by referene to that liene. (2) In determining for the purposes of paragraph 3(2) or 6(4), the amount of the profits in respet of whih any liene was the basis for an assessment; or for the purposes of paragraph 6(4), the amount of any preanellation profits; the Assessor shall ompute that amount as if for the purposes of making a separate assessment in respet of those profits on the person on whom the assessment was made, making all suh alloations and apportionments of reeipts, expenses, allowanes and dedutions taken into aount or made for the purposes of the atual assessment as appear to the Assessor to be just and reasonable in the irumstanes. (3) A notie under paragraph 2 as it applies by virtue of paragraph 3 or 6 shall give partiulars of the manner in whih the amount required to be paid was determined. Shedule AT 3 of 1970 Page 191

192

193 Inome Tax At 1970 Endnotes ENDNOTES Table of Legislation History Legislation Year and No Commenement Table of Renumbered Provisions Original Current Table of Endnote Referenes 1 Subs (2) substituted by Inome Tax (Amendment) At 2006 s 7. 2 Subs (2A) substituted by Inome Tax (Amendment) At 2006 s 7. 3 Subs (3) substituted by Inome Tax (Amendment) At 2006 s 7. 4 Subs (3A) inserted by Inome Tax (Amendment) At 2006 s 7. 5 Subs (3B) inserted by Inome Tax (Amendment) At 2006 s 7. 6 Subs (3BA) inserted by Inome Tax (Corporate Taxpayers) At 2006 s Subs (3C) inserted by Inome Tax (Amendment) At 2006 s 7. 8 Subs (3D) inserted by Inome Tax (Amendment) At 2006 s 7. 9 Subs (3E) inserted by Inome Tax (Amendment) At 2006 s S 1A repealed by Inome Tax (Amendment) At 2006 s Para (f) repealed by Inome Tax At 1989 s Subs (1) amended by Inome Tax At 1991 s Subs (2) amended by GC119/86 and by SD155/10 Sh Subs (3) amended by GC119/86 and by SD155/10 Sh S 2A inserted by Inome Tax (Amendment) At 1986 s S 2B inserted by Inome Tax (Amendment) At 1986 s S 2C inserted by Inome Tax (Amendment) At 1986 Sh Ss 2D and 2E repealed by Inome Tax At 2000 s 1 having been repealed by Temporary Order SD149/ S 2F inserted by Inome Tax At 1989 Sh Subs (2) amended by Inome Tax At 1991 s S 2G inserted by Inome Tax At 1989 Sh Subs (2A) inserted by Inome Tax At 2003 s 24. AT 3 of 1970 Page 193

194 Endnotes Inome Tax At Subs (10) added by Inome Tax (Amendment) At 2004 s 11 and amended by Inome Tax (Amendment) At 2006 s S 2H inserted by Inome Tax At 1989 Sh Subs (2) substituted by Inome Tax At 2009 s 6 effetive tax year ommening 6/4/2009 and thereafter. 26 Subs (4) substituted by Inome Tax At 2009 s 6 effetive tax year ommening 6/4/2009 and thereafter. 27 Para amended by Inome Tax At 2009 s 6 effetive tax year ommening 6/4/2009 and thereafter. 28 Para amended by Inome Tax At 2009 s 6 effetive tax year ommening 6/4/2009 and thereafter. 29 S 2I inserted by Inome Tax At 1989 Sh Subs (2) substituted by Inome Tax At 2009 s 7 effetive tax year ommening 6/4/2009 and thereafter. 31 Subs (4) repealed by Inome Tax At 2009 s 7 effetive tax year ommening 6/4/2009 and thereafter. 32 Subs (5) amended by Inome Tax At 2009 s 7 effetive tax year ommening 6/4/2009 and thereafter. 33 Subs (7) repealed by Inome Tax At 2009 s 7 effetive tax year ommening 6/4/2009 and thereafter. 34 S 2J inserted by Inome Tax At 1989 Sh S 2K inserted by Inome Tax At 1989 Sh S 2KA inserted by Inome Tax At 2000 s Subs (1) amended by Inome Tax (Amendment) At 2004 s Subs (1A) inserted by Inome Tax (Amendment) At 2004 s S 2L inserted by Inome Tax At 1995 s 1 effetive tax year ommening 6/4/1993 and thereafter. 40 S 2M inserted by Limited Liability Companies At 1996 s 46 (as amended). 41 S 2MA inserted by Limited Partnership (Legal Personality) At 2011 s 3 42 S 2O inserted by Inome Tax At 2000 s S 2P inserted by Inome Tax At 2000 s Subs (4) repealed by SD98/12 and onfirmed by Inome Tax At 2013 s Definition of member amended by SD98/12 and onfirmed by Inome Tax At 2013 s S 2PA inserted by Inome Tax (Amendment) At 2008 s 7 operative 1/11/2006 for that part year of assessment or aounting period and thereafter and amended by Inome Tax At 2009 s S 2Q inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 48 S 2R inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 49 S 2S inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 50 S 2T inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 51 S 2U inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 52 S 2V inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). Page 194 AT 3 of 1970

195 Inome Tax At 1970 Endnotes 53 S 2W inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 54 S 2X inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 55 S 2Y inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 56 S 2Z inserted by Inome Tax (Amendment) At 2006 s 8 with saving subs (2). 57 Ss 3 and 4 repealed by Inome Tax (Corporate Taxpayers) At 2006 s S 5 substituted by Inome Tax (Corporate Taxpayers) At 2006 s 19 effetive year of assessment ending 5 April 2007 and thereafter. 59 Ss 6 and 7 repealed by Inome Tax (Corporate Taxpayers) At 2006 s S 7A inserted by Inome Tax (Amendment) At 2004 s S 7B inserted by Inome Tax (Amendment) At 2004 s Subs (1) amended by Civil Partnership At 2011 Sh Subs (2) substituted by Inome Tax At 1974 s 8 and spent by virtue of the repeal of s 34 by Inome Tax At 1989 Sh Para amended by Finanial Servies At 2008 Sh S 11A inserted by Inome Tax (Amendment) At 2006 s Ss 12 to 13M repealed by SD847/11 and onfirmed by Inome Tax At 2013 s 2, with saving and transitional provisions for the Attribution Regime for Individuals see para 5 SD847/11 for the period up to and inluding 5 April Ss 14A to 14D repealed by Inome Tax (Amendment) At 2008 s 5(1) effetive year of assessment or aounting period ommening on or after 6/4/ Para (f) amended by Civil Partnership At 2011 Sh Subs (2) amended by Inome Tax (Amendment) At 1979 Sh 1 and by Health and Soial Seurity At 1986 s S 16A repealed by SD51/00. Repeal onfirmed by Inome Tax At 2001 s S 16B inserted by Inome Tax At 1989 s S 16C inserted by SD50/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 73 Subs (2) amended by Inome Tax At 1989 s S 18 substituted by Inome Tax (Amendment) At 1986 s S 18A inserted by Inome Tax At 1973 s Ss 20A to 20F repealed by Inome Tax (Corporate Taxpayers) At 2006 Sh. 77 S 21 repealed by Inome Tax (Amendment) At 1979 s Subs (1) substituted by Inome Tax (Amendment) At 1979 s 3 and amended by Inome Tax (Amendment) At 2006 Sh amendment effetive year of assessment ommening 6/4/2006 and thereafter and by Civil Partnership At 2011 Sh Subs (4) amended by Treasury At 1985 Sh S 21A inserted by Inome Tax At 1973 s S 25 substituted by Inome Tax (Corporate Taxpayers) At 2006 s 9 effetive year of assessment ommening 6/4/2007 and thereafter. 82 Subs (4) repealed by Inome Tax At 2009 Sh S 25A substituted by Inome Tax (Corporate Taxpayers) At 2006 s 9 effetive year of assessment ommening 6 April 2007 and thereafter. AT 3 of 1970 Page 195

196 Endnotes Inome Tax At S 25B inserted by Inome Tax (Corporate Taxpayers) At 2006 s 9 effetive year of assessment ommening 6 April 2007 and thereafter. 85 S 25C inserted Inome Tax (Corporate Taxpayers) At 2006 s 9 effetive year of assessment ommening 6 April 2007 and thereafter. 86 S 26 repealed by Inome Tax At 1973 s Para substituted by Inome Tax (Corporate Taxpayers) At 2006 s 11 (transitional provisions SD523/06 art 2). 88 Para substituted by Inome Tax (Corporate Taxpayers) At 2006 s 11 (transitional provisions SD523/06 art 2). 89 Subs (3) amended by Inome Tax (Corporate Taxpayers) At 2006 s 11 (transitional provisions SD523/06 art 2) 90 Subs (5) added by Inome Tax (Corporate Taxpayers) At 2006 s 11 (transitional provisions SD523/06 art 2). 91 S 27A inserted by Inome Tax (Amendment) At 1986 s S 28 repealed by Inome Tax (Amendment) At 1986 s Subs (1) amended by Inome Tax At 1973 s 7 and by Inome Tax At 1995 s Subs (2) added by Inome Tax Et. (Amendment) At 1985 s Subs (3) added by Inome Tax At 1995 s Original s 30 repealed by Inome Tax (Amendment) At 1986 s 4. S 30 inserted by Inome Tax (Amendment) At 2008 s Para substituted by Inome Tax At 2009 s 9 effetive tax year ommening 6/4/2009 and thereafter. 98 Para amended by Inome Tax At 2009 s 9 effetive tax year ommening 6/4/2009 and thereafter. 99 Subs (1) amended by Inome Tax At 2009 s 9 effetive tax year ommening 6/4/2009 and thereafter. 100 Para amended by Inome Tax At 2009 s 9 effetive tax year ommening 6/4/2009 and thereafter. 101 S 31A inserted by Inome Tax At 1989 s S 31B inserted by Inome Tax At 1995 s Definition of ompensation sheme amended by Finanial Servies At 2008 Sh 6 and by Insurane At 2008 Sh Definition of fund amended by Insurane At 2008 Sh S 31C inserted by Inome Tax At 1995 s 4 effetive tax year ommening 6/4/ S 31D repealed by Inome Tax At 2009 Sh Subs (1) amended by SD27/11 effetive tax year ommening 6/4/2011 and thereafter. 108 S 32A inserted by Inome Tax At 1991 s S 33 substituted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 110 Ss 34 and 34A repealed by Inome Tax At 1989 Sh Subs (1) substituted by Inome Tax (Amendment) At 2006 Sh effetive year of assessment ommening 6/4/2006 and thereafter and amended by Tynwald Resolution Page 196 AT 3 of 1970

197 Inome Tax At 1970 Endnotes 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter and by Civil Partnership At 2011 Sh Para amended by Civil Partnership At 2011 Sh Para repealed by Inome Tax (Amendment) At 2006 Sh effetive assessment year 6/4/ Para substituted by Civil Partnership At 2011 Sh Para amended by Civil Partnership At 2011 Sh Subs (2A) inserted by Inome Tax At 2003 s 25 effetive tax year ommening 6/4/2003 and thereafter. 117 Para amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 118 Para amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 119 Para (ba) inserted by Civil Partnership At 2011 Sh Para () substituted by Civil Partnership At 2011 Sh Para (d) repealed by Civil Partnership At 2011 Sh Subs (4) amended by Civil Partnership At 2011 Shs 14 and Subs (4A) inserted by Civil Partnership At 2011 Sh Subs (5) substituted by Inome Tax (Amendment) At 2006 Sh effetive year of assessment ommening 6/4/2006 and thereafter and amended by Civil Partnership At 2011 Sh Subs (6A) inserted by Inome Tax At 2000 s Subs (7) amended by Inome Tax (Amendment) At 2006 Sh effetive year of assessment ommening 6/4/2006 and thereafter. 127 S 35 substituted by Inome Tax At 1989 s Subs (1) amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 129 Subs (2) repealed by Inome Tax (Amendment) At 2006 Sh effetive year of assessment ommening 6/4/2006 and thereafter. 130 S 35A inserted by Inome Tax At 1989 s Subs (1) amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 132 Subs (2) repealed by Inome Tax (Amendment) At 2006 Sh effetive year of assessment ommening 6/4/2006 and thereafter. 133 Para repealed by Inome Tax (Amendment) At 2006 Sh effetive year of assessment ommening 6/4/2006 and thereafter. 134 Subs (4) amended by Inome Tax (Amendment) At 2006 Sh effetive year of assessment ommening 6/4/2006 and thereafter. 135 S 35B inserted by Inome Tax At 2000 s Subs (1) amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 137 Subs (2) amended by Civil Partnership At 2011 Sh S 35C inserted by Inome Tax (Amendment) At 2006 s 6. AT 3 of 1970 Page 197

198 Endnotes Inome Tax At S 35D inserted by Inome Tax (Amendment) At 2006 s S 35E inserted by Inome Tax (Amendment) At 2006 s Ss 36 to 38 repealed by Inome Tax At 1989 Sh S 39 repealed by Inome Tax At 1980 Sh Para substituted by Civil Partnership At 2011 Sh Para amended by Civil Partnership At 2011 Sh Subs (2) amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 146 S 39A substituted by Inome Tax At 2000 s Subs (1) amended by SD17/10 effetive tax year ommening 6/4/2010 and thereafter, and by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 148 Subs (2A) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 149 Subs (3A) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 150 S 39AA (previously s 39B) inserted by Inome Tax At 1995 s 6 and renumbered by Inome Tax At 2001 s Para substituted by Civil Partnership At 2011 Sh Para substituted by Civil Partnership At 2011 Sh Para () amended by Civil Partnership At 2011 Sh Subs (3) amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 155 S 39B inserted by Inome Tax At 2000 s Para substituted by Civil Partnership At 2011 Sh Para substituted by Civil Partnership At 2011 Sh Subs (3) amended by Civil Partnership At 2011 Sh 14. Formula amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 159 S 39C inserted by Inome Tax At 2000 s Para amended by SD155/10 Sh S 39D inserted by Inome Tax At 2000 s Ss 40, 40A, 40B, 41, 41A, 42 and 43 repealed by Inome Tax At 1989 Sh S 43A inserted by Inome Tax Et. (Amendment) At 1985 s 5 and amended by SD32/ Subs (1) amended by Tynwald Resolution 16/2/2010 effetive tax year ommening 6/4/2010 and thereafter. 165 S 43B inserted by Inome Tax At 2009 Sh S 44 repealed by Inome Tax At 2009 Sh S 44A heading substituted by Civil Partnership At 2011 Sh S 44A inserted by Inome Tax At 1974 s 6 and amended by Inome Tax At 2009 Sh 2 and by Civil Partnership At 2011 Sh S 44B inserted by Inome Tax At 1989 s 65. Page 198 AT 3 of 1970

199 Inome Tax At 1970 Endnotes 170 Ss 45 to 47 repealed by Inome Tax (Retirement Benefit Shemes) At 1978 Sh Subs (1) substituted by SD8/96 and amended by Inome Tax At 2001 s Para substituted by SD8/96 and amended by Welfare Reform and Pensions At 1999 (of Parliament) Shs 8 and 13 (as applied by SD600/00 and by SD525/01) and by SD72/09 effetive in respet of the tax year ending 5/4/2009 and thereafter. Winter Bonus and Christmas Bonus payments added by SD83/02. Job Seeker s Allowane payment added by SD72/ S 48 substituted by Inome Tax At 1991 s 5 effetive tax year ommening 6/4/91 and thereafter. 174 Subs (1) substituted by Inome Tax At 1991 s 6 and amended by SD125/ Subs (3) amended by Inome Tax At 1991 s Definition of ontrol substituted by Inome Tax At 1991 s Definition of termination payment amended by Inome Tax At 2001 s S 48A inserted by Inome Tax (Amendment) At 1986 s S 48B inserted by Inome Tax At 1991 s Para () amended by Civil Partnership At 2011 Sh Subs (3) amended by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 182 Subs (4) amended by SD123/98 and by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 183 Subs (4A) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 184 Subs (8) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 185 S 48C inserted by Inome Tax At 1995 s Para amended by Insurane At 2008 Sh S 48D inserted by Inome Tax At 1995 s Para amended by Inome Tax At 1973 s Para amended by Inome Tax At 1980 Sh Para () amended by Inome Tax At 1981 s 3 and by Civil Partnership At 2011 Sh Para (d) amended by Civil Partnership At 2011 Sh Subs (2) amended by Inome Tax At 1973 s Subs (3) amended by Civil Partnership At 2014 Sh Para () amended by Inome Tax (Amendment) At 1986 s Para (d) amended by Civil Partnership At 2011 Sh Subs (6A) inserted by Inome Tax (Amendment) At 1986 s Subs (8) substituted by Inome Tax (Amendment) At 2006 Sh effetive tax year ommening 6/4/2006 and thereafter and amended by Civil Partnership At 2011 Sh Para amended by Civil Partnership At 2011 Sh Para amended by Inome Tax At 1980 Sh 3 and by Inome Tax At 1981 s 3. AT 3 of 1970 Page 199

200 Endnotes Inome Tax At Para amended by Civil Partnership At 2011 Sh Para amended by Inome Tax At 1980 Sh Para () amended by Inome Tax At 1981 s 3 and by Civil Partnership At 2011 Sh Subs (6) amended by Inome Tax At 1981 s S 49A inserted by Inome Tax At 1973 s Subs (1) substituted by Inome Tax At 1973 s 11 and amended by Inome Tax At 1991 s Subs (1A) inserted by Inome Tax At 1973 s 11 and amended by Inome Tax At 1981 s 1 and by Inome Tax At 1991 s Subs (1B) inserted by Inome Tax At 1973 s 11 and amended by Inome Tax At 1981 s 1 and by Inome Tax At 1991 s Subs (1BB) inserted by Inome Tax 1981 s Subss (1C), (2), (2A) and (2B) repealed by Inome Tax At 1981 Sh Para amended by Civil Partnership At 2011 Sh Subs (4) amended by Inome Tax At 1981 Sh Subs (5) repealed by Inome Tax At 1981 Sh Subs (9) amended by Inome Tax At 2009 Sh S 50A inserted by Inome Tax At 1981 s Heading inserted by SD807/10 and onfirmed by Inome Tax At 2011 s 4, effetive 22/10/ S 50B substituted by Inome Tax (Pensions) At 2008 s 17(1) effetive tax year ommening 6/4/2008 and thereafter. 217 S 50C inserted by SD807/10 and onfirmed by Inome Tax At 2011 s 4, effetive 22/10/ S 50D inserted by SD807/10 and onfirmed by Inome Tax At 2011 s 4, effetive 22/10/ S 50E inserted by SD807/10 and onfirmed by Inome Tax At 2011 s 4, effetive 22/10/ S 50F inserted by SD807/10 and onfirmed by Inome Tax At 2011 s 4, effetive 22/10/ Heading inserted by SD807/10 and onfirmed by Inome Tax At 2011 s 4, effetive 22/10/ Subs (1) repealed by Inome Tax (Amendment) At 1986 s Subs (2) amended by Inome Tax (Amendment) At 1986 s Subpara (ii) amended by Inome Tax At 1995 s Subs (2A) inserted by Inome Tax At 1973 s Para amended by Inome Tax At 2009 Sh Para (bb) inserted by Inome Tax At 1980 Sh Para (e) added by Inome Tax At 1989 s Subs (6) amended by Inome Tax At 2009 Sh Subs (3) amended by Treasury At 1985 Sh 2. Page 200 AT 3 of 1970

201 Inome Tax At 1970 Endnotes 231 Subs (1) amended by GC155/91 and substituted by Inome Tax At 2009 s Subs (1A) inserted by Inome Tax At 2009 s Subs (1B) inserted by Inome Tax At 2009 s Subs (1C) inserted by Inome Tax At 2009 s Subs (1D) inserted by Inome Tax At 2009 s Subs (1E) inserted by Inome Tax At 2009 s Subs (1F) inserted by Inome Tax At 2009 s Subs (1G) inserted by Inome Tax At 2009 s Ed. note: Inome Tax At 2009 s 10(5) provides that orders made under this setion of this At before 21/4/2009, and the arrangements to whih those orders relate, ontinue to have effet. 240 Subs (2) repealed by Inome Tax At 1989 s Subs (3) amended by Inome Tax At 1989 s 66, by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2) and by Inome Tax At 2009 s Ed. note: Inome Tax At 2009 s 10(5) provides that orders made under this setion At before 21/4/2009, and the arrangements to whih those orders relate, ontinue to have effet. 243 Subs (4) amended by Treasury At 1985 Sh Subs (5) added by Inome Tax At 2009 s Subs (2) amended by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2). 246 Subs (3) substituted by Inome Tax At 1989 s Subs (4) amended by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2). 248 Subs (8) amended by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2). 249 Subs (9) amended by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2). 250 Subs (10) amended by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2). 251 S 55A inserted by Inome Tax At 1995 s 10 to have effet in respet of the tax year ommening on 6/4/1994 and thereafter. 252 S 56 repealed by Inome Tax At 1989 s Subs (A1) inserted by Inome Tax At 2011 s 5 operative for all years of assessment ommening on or after 6/4/ Subs (B1) inserted by Inome Tax At 2011 s 5 operative for all years of assessment ommening on or after 6/4/ Subs (C1) inserted by Inome Tax At 2011 s 5 operative for all years of assessment ommening on or after 6/4/ Subs (D1) inserted by Inome Tax At 2011 s 5 operative for all years of assessment ommening on or after 6/4/2011. AT 3 of 1970 Page 201

202 Endnotes Inome Tax At Subs (1) amended by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2) and by Inome Tax At 2011 s 5 operative for all years of assessment ommening on or after 6/4/ Para amended by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2). 259 Subs (2A) inserted by Inome Tax (Amendment) At 2006 s Subs (3A) inserted by Inome Tax (Amendment) At 2006 s Subs (4) amended by Inome Tax (Corporate Taxpayers) At 2006 s 14 (transitional provisions SD523/06 art 2). 262 Subs (6) substituted by Inome Tax At 2009 s S 57 substituted by Inome Tax At 1989 s Subs (2) amended by Inome Tax At 1991 s Subs (4) amended by Inome Tax At 1991 s Subs (5) amended by Inome Tax At 1991 s Subs (8) added by Inome Tax At 1991 s Subs (9) added by Inome Tax At 1991 s 8 and substituted by Inome Tax (Amendment) At 2008 s 6(1) effetive i.r.o. the amount of any loan paid on or after the date on whih s 6 omes into operation whether the arrangement for the loan was made before or after that date. 269 Subs (10) added by Inome Tax (Amendment) At 2008 s 6(1) effetive i.r.o. the amount of any loan paid on or after the date on whih s 6 omes into operation whether the arrangement for the loan was made before or after that date. 270 Subs (11) added by Inome Tax (Amendment) At 2008 s 6(1) effetive i.r.o. the amount of any loan paid on or after the date on whih s 6 omes into operation whether the arrangement for the loan was made before or after that date. 271 S 58 substituted by Inome Tax (Amendment) At 1986 s S 58A inserted by Inome Tax At 1991 s Subs (1) amended by Inome Tax At 1991 s Subs (1A) added by Inome Tax At 1991 s S 59 substituted by Inome Tax (Amendment) At 1986 s S 60 amended by Inome Tax At 1978 Sh S 61 amended by Inome Tax At 2009 Sh S 61A substituted by Inome Tax (Amendment) At 2008 s 4 effetive for the year of assessment or aounting period ommening on or after 6/4/ Ss 61B and 61C repealed by Inome Tax At 1991 s Subs (1) amended by Inome Tax (Corporate Taxpayers) At 2006 s 11 (transitional provisions SD523/06 art 2). 281 Para substituted by Inome Tax (Corporate Taxpayers) At 2006 s 11 (transitional provisions SD523/06 art 2). 282 Subs (3) amended by Inome Tax (Corporate Taxpayers) At 2006 s 11 (transitional provisions SD523/06 art 2). 283 Para (aa) inserted by Inome Tax At 1995 s Subs (4) amended by Inome Tax At 1995 s 11. Page 202 AT 3 of 1970

203 Inome Tax At 1970 Endnotes 285 S 61D inserted by Inome Tax At 1989 Sh Subs (1) substituted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 287 Subs (3) amended by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 288 Subs (3A) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 289 Subs (5) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 290 S 61E inserted by Inome Tax At 1991 s S 61F inserted by Inome Tax At 1991 s Subs (1) amended by Treasury At 1985 Sh 2 and by Inome Tax (Amendment) At 2004 s Subs (4) amended by Inome Tax (Amendment) At 2004 s Subs (6) added by Inome Tax (Amendment) At 2004 s Subs (7) added by Inome Tax (Corporate Taxpayers) At 2006 s 15 (transitional provisions SD523/06 art 2). 296 Subs (8) inserted by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 297 S 62A inserted by Inome Tax (Amendment) At 2004 s Subs (2) amended by Audit At 2006 Sh S 62B inserted by Inome Tax (Amendment) At 2004 s Subs (4) added by SD474/10 and onfirmed by Inome Tax At 2011 s 4, effetive 16/7/ Subs (5) added by SD474/10 and onfirmed by Inome Tax At 2011 s 4, effetive 16/7/ S 62C inserted by Inome Tax (Amendment) At 2008 s 7 operative 1/11/2006 and appliable i.r.o. that part of the year of assessment, or in the ase of a orporate taxpayer, that part of the aounting period, ommening on that date and ending on 5/4/ 2007 and i.r.o. every subsequent year or, as the ase may be, period. 303 S 63A inserted by Limited Liability Companies At 1996 s S 63B inserted by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 305 S 63C inserted by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 306 S 63D inserted by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 307 S 64 repealed by Inome Tax (Amendment) At 2006 s S 65 heading amended by Civil Partnership At 2011 Sh Subs (1) amended by Civil Partnership At 2011 Sh Subs (2) amended by Civil Partnership At 2011 Sh Subs (3) amended by Civil Partnership At 2011 Sh 14. AT 3 of 1970 Page 203

204 Endnotes Inome Tax At S 65 substituted by Inome Tax (Amendment) At 2006 s 3 and amended by Civil Partnership At 2011 Sh Subs (1) amended by Civil Partnership At 2011 Sh Subs (2) amended by SD708/09 and onfirmed by Inome Tax At 2010 s Subs (2) amended by by Civil Partnership At 2011 Sh Subs (2A) inserted by SD708/09 and onfirmed by Inome Tax At 2010 s Subs (3) amended by Civil Partnership At 2011 Sh S 65A substituted by Inome Tax (Amendment) At 2006 s Subpara (i) amended by Civil Partnership At 2011 Sh Subs (2) amended by Civil Partnership At 2011 Sh S 65B substituted by Inome Tax (Amendment) At 2006 s Para amended by Civil Partnership At 2011 Sh Para amended by SD708/09 and onfirmed by Inome Tax At 2010 s Para amended by Civil Partnership At 2011 Sh Para () amended by Civil Partnership At 2011 Sh Para (d) amended by Civil Partnership At 2011 Sh Para (e) added by SD708/09 and onfirmed by Inome Tax At 2010 s S 65C inserted by Inome Tax (Amendment) At 2006 s Subs (1) amended by Civil Partnership At 2011 Sh Subs (2) amended by Civil Partnership At 2011 Sh S 65D inserted by Inome Tax (Amendment) At 2006 s Subs (1) amended by Civil Partnership At 2011 Sh Subs (2) amended by Civil Partnership At 2011 Sh Para amended by Civil Partnership At 2011 Sh Subs (3) amended by Civil Partnership At 2011 Sh Subs (4) amended by Civil Partnership At 2011 Sh S 65E inserted by Inome Tax (Amendment) At 2006 s Subs (2) amended by Civil Partnership At 2011 Sh Subs (6) amended by Civil Partnership At 2011 Sh Subs (7) amended by Civil Partnership At 2011 Sh Subs (8) amended by Civil Partnership At 2011 Sh S 65F inserted by Inome Tax (Amendment) At 2006 s Para amended by Civil Partnership At 2011 Sh Para amended by Civil Partnership At 2011 Sh Para () amended by Civil Partnership At 2011 Sh Subs (3) amended by Civil Partnership At 2011 Sh Subs (4) amended by Civil Partnership At 2011 Sh Subs (5) amended by Civil Partnership At 2011 Sh S 65G inserted by Inome Tax (Amendment) At 2006 s Subs (2) amended by Inome Tax At 2009 Sh 2, by Civil Partnership At 2011 Sh 14 and by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. Page 204 AT 3 of 1970

205 Inome Tax At 1970 Endnotes 351 Subs (3) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, tax year ommening 6/4/2012 and thereafter. 352 Subs (4) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, tax year ommening 6/4/2012 and thereafter. 353 S 65H inserted by Inome Tax (Amendment) At 2006 s S 65I heading amended by Civil Partnership At 2011 Sh Para amended by Civil Partnership At 2011 Sh Subs (2) amended by Civil Partnership At 2011 Sh Subs (3) amended by Inome Tax At 2009 Sh 2, by Civil Partnership At 2011 Sh 14 and by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 358 Subs (4) inserted by SD48/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 359 Subs (5) inserted by SD49/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 360 S 65I inserted by Inome Tax (Amendment) At 2006 s 4 and amended by Civil Partnership At 2011 Sh S 65J inserted by Inome Tax (Amendment) At 2006 s Subs (6) inserted by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 363 S A66 inserted by Inome Tax (Corporate Taxpayers) At 2006 s 15 (transitional provisions SD523/06 art 2). 364 Subs (3) amended by Inome Tax At 1978 Sh Subs (4) amended by Inome Tax At 1989 s Subs (6) added by Inome Tax At 1989 s S 71 substituted by Inome Tax (Amendment) At 1986 s S 72 repealed by Inome Tax (Amendment) At 1986 s S 73 substituted by Inome Tax At 1989 s Para () substituted by Civil Partnership At 2011 Sh S 78 substituted by Inome Tax At 1989 s S 80 amended by Treasury At 1985 Sh S 80A inserted by Inome Tax (Amendment) At 2008 s 2 effetive i.r.o. reords for years of assessment and aounting periods ending after the ommenement of the Inome Tax (Amendment) At S 81 substituted by Inome Tax (Corporate Taxpayers) At 2006 s 1 (transitional provisions SD523/06 art 2). 375 S 81A inserted by Inome Tax (Amendment) At 2004 s S 81B inserted by Inome Tax (Amendment) At 2004 s S 83A inserted by Inome Tax At 1989 s S A84 inserted by Inome Tax (Corporate Taxpayers) At 2006 s 4 (transitional provisions SD523/06 art 2). 379 S B84 inserted by Inome Tax (Corporate Taxpayers) At 2006 s 4 (transitional provisions SD523/06 art 2). AT 3 of 1970 Page 205

206 Endnotes Inome Tax At Subs (2) amended by Inome Tax (Corporate Taxpayers) At 2006 s 5 (transitional provisions SD523/06 art 2). 381 Subs (3) amended by Inome Tax (Corporate Taxpayers) At 2006 s 5 (transitional provisions SD523/06 art 2). 382 S 84A inserted by Inome Tax (Amendment) At 1986 s Subs (2) substituted by Inome Tax At 1991 s 10 and amended by Inome Tax At 2009 s 15 effetive in respet of any return of inome made and delivered after 6/4/08 by a person who has been assessed under s 86(1). 384 Subss (3) to (5) repealed by Inome Tax At 1991 s Subs (6) substituted by Inome Tax At 1989 s Subs (7) substituted by Inome Tax At 1989 s Subs (8) substituted by Inome Tax At 1989 s Subs (8A) substituted by Inome Tax At 1989 s Subs (10) added by Inome Tax (Corporate Taxpayers) At 2006 s 6 (transitional provisions SD523/06 art 2). 390 S 86 substituted by Inome Tax At 1978 s Subs (2) amended by Inome Tax At 2009 s 16 effetive in respet of any return of inome made and delivered after 6/4/08 by a orporate taxpayer who has been assessed under s 86A(1). 392 S 86A inserted by Inome Tax (Corporate Taxpayers) At 2006 s 6 (transitional provisions SD523/06 art 2). 393 Subs (1) amended by Inome Tax At 1973 s 14 and by Inome Tax At 1978 Sh Subs (1) substituted by Tribunals At 2006 Sh Subs (2) substituted by Tribunals At 2006 Sh Subs (3) substituted by Tribunals At 2006 Sh Subs (4) substituted by Tribunals At 2006 Sh Subss (5) and (6) repealed by Tribunals At 2006 Sh Subss (8) and (9) repealed by Tribunals At 2006 Sh Subs (11) amended by Tribunals At 2006 Sh Para amended by GC155/ Para repealed by Tribunals At 2006 Sh Subs (15) amended by High Court At 1991 Sh 3. See General Note Subs (19) repealed by Tribunals At 2006 Sh Subs (23) added by Inome Tax (Amendment) At 2008 s 3 effetive for the year of assessment or aounting period ommening on or after 6/4/ Subs (1) substituted by Inome Tax At 1981 Sh Subs (2) repealed by Inome Tax At 1981 Sh S 93 repealed by Inome Tax (Corporate Taxpayers) At 2006 s Subs (2) amended by Treasury At 1985 Sh Subs (1) amended by Treasury At 1985 Sh Subs (3) amended by Inome Tax (Amendment) At 1979 Sh 1 and by Treasury At 1985 Sh 2. Page 206 AT 3 of 1970

207 Inome Tax At 1970 Endnotes 412 S 95A inserted by Inome Tax (Amendment) At 1979 Sh 1 and amended by Inome Tax (Amendment) At 2006 Sh effetive for year of assessment ommening 6/4/2006 and thereafter. 413 S 96 substituted by Inome Tax (Corporate Taxpayers) At 2006 s S 96A inserted by Inome Tax (Amendment) At 2004 s S 96B inserted by Inome Tax (Amendment) At 2004 s S 96C inserted by Inome Tax (Amendment) At 2004 s S 97 amended by Inome Tax (Corporate Taxpayers) At 2006 s 16 and by Inome Tax At 2009 Sh S 98 amended by Inome Tax At 1981 Sh Subs (1) amended by Statute Law Revision At 1997 Sh Subs (3) substituted by Inome Tax At 1989 s Subs (4) amended by Inome Tax At 1989 s S 98A inserted by Inome Tax (Amendment) At 1986 s Subs (8) amended by Statute Law Revision At 1997 Sh S 98B inserted by Inome Tax (Amendment) At 1986 s Subs (1) amended by Inome Tax At 2009 Sh Subs (2) amended by Inome Tax At 2009 Sh Subs (3) amended by Inome Tax At 2009 Sh Subs (5) amended by Inome Tax At 2009 Sh S 99 substituted by Inome Tax (Corporate Taxpayers) At 2006 s Subs (1) amended by Inome Tax At 2009 Sh S 100 substituted by Inome Tax (Corporate Taxpayers) At 2006 s S 101 amended by Inome Tax At 1989 s 77 and by Inome Tax (Corporate Taxpayers) At 2006 s S 101A inserted by Inome Tax (Corporate Taxpayers) At 2006 s S 102 amended by Inome Tax (Amendment) At 2004 s 15 and by Inome Tax (Corporate Taxpayers) At 2006 s Para amended by Treasury At 1985 Sh Para repealed by Inome Tax At 2011 s S 105 amended by Treasury At 1985 Sh 3 and by Civil Servie At 1990 Sh S 105A inserted by Inome Tax At 2003 s S 105B inserted by Inome Tax At 2003 s Heading inserted by Inome Tax (Amendment) At 2004 Sh S 105C inserted by Inome Tax (Amendment) At 2004 Sh Subs (3A) inserted by Inome Tax At 2011 s 7 effetive 18/10/ Subs (3B) inserted by Inome Tax At 2011 s 7 effetive 18/10/ Subs (3C) inserted by Inome Tax At 2011 s 7 effetive 18/10/ Subs (4) amended by Inome Tax (Amendment) At 2008 s 3 effetive for year of assessment or aounting period ommening on or after 6/4/ S 105D inserted by Inome Tax (Amendment) At 2004 Sh 2. AT 3 of 1970 Page 207

208 Endnotes Inome Tax At Subs (8) added by Inome Tax (Amendment) At 2008 s 3 effetive year of assessment or aounting period ommening on or after 6/4/ Subs (9) added by Inome Tax (Amendment) At 2008 s 3 effetive year of assessment or aounting period ommening on or after 6/4/ Subs (10) added by Inome Tax (Amendment) At 2008 s 3 effetive year of assessment or aounting period ommening on or after 6/4/ Subs (11) added by Inome Tax (Amendment) At 2008 s 3(1) effetive i.r.o. the year of assessment or aounting period ommening on or after 6/4/ Subs (12) added by Inome Tax (Amendment) At 2008 s 3 effetive year of assessment or aounting period ommening on or after 6/4/ Subs (13) added by Inome Tax (Amendment) At 2008 s 3 effetive year of assessment or aounting period ommening on or after 6/4/2007 and amended by Inome Tax At 2011 s Subs (14) added by Inome Tax (Amendment) At 2008 s 3 effetive year of assessment or aounting period ommening on or after 6/4/ Subs (15) added by Inome Tax (Amendment) At 2008 s 3(1) effetive i.r.o. the year of assessment or aounting period ommening on or after 6/4/ Subs (16) added by Inome Tax (Amendment) At 2008 s 3 effetive year of assessment or aounting period ommening 6/4/2007 and amended by Inome Tax At 2011 s S 105E inserted by Inome Tax (Amendment) At 2004 Sh S 105F inserted by Inome Tax (Amendment) At 2004 Sh S 105G inserted by Inome Tax (Amendment) At 2004 Sh Heading inserted by Inome Tax (Amendment) At 2004 Sh S 105H inserted by Inome Tax (Amendment) At 2004 Sh Para amended by Inome Tax At 2009 s S 105I inserted by Inome Tax (Amendment) At 2004 Sh S 105J inserted by Inome Tax (Amendment) At 2004 Sh S 105K inserted by Inome Tax (Amendment) At 2004 Sh S 105L inserted by Inome Tax (Amendment) At 2004 Sh S 105M inserted by Inome Tax (Amendment) At 2004 Sh S 105N inserted by Inome Tax (Amendment) At 2004 Sh S 105O inserted by Inome Tax (Amendment) At 2004 Sh Para () substituted by Inome Tax (Amendment) At 2006 s Para (e) substituted by Inome Tax (Amendment) At 2006 s Para (f) added by Corruption At 2008 Sh S 106 substituted by Inome Tax At 2003 s S 106A inserted by Inome Tax Et. (Amendment) At 1985 s Subs (1) amended by Inome Tax At 2001 s 4 and by SD155/10 Sh S 106B inserted by Inome Tax At 1989 s 78 and amended by SD155/10 Sh Subs (1) amended by SD155/10 Sh S 106C inserted by Inome Tax At 2003 s 18 and amended by SD155/10 Sh 6. Page 208 AT 3 of 1970

209 Inome Tax At 1970 Endnotes 478 S 106D inserted by Inome Tax At 2003 s S 106E inserted by Inome Tax At 2003 s Para amended by Gambling (Amendment) At 2006 s S 106F inserted by Inome Tax At 2003 s Subs (2) amended by Inome Tax (Corporate Taxpayers) At 2006 s 8 (transitional provisions SD523/06 art 2). 483 Subs (3) amended by Treasury At 1985 Sh Subs (4) amended by Inome Tax At 1978 Sh Subs (1) amended by SD962/08 effetive 6/2/ S 107A substituted by Inome Tax (Corporate Taxpayers) At 2006 s 16 (transitional provisions SD523/06 art 2). 487 Para amended by Inome Tax (Amendment) At 2006 s Subs (1) amended by SD963/08 effetive 6/2/ Para amended by Inome Tax (Amendment) At 2006 s Para (i) amended by Inome Tax (Amendment) At 2006 s Para amended by Inome Tax (Amendment) At 2006 s S 107B inserted by Inome Tax (Amendment) At 2004 s Heading inserted by Inome Tax (Amendment) At 2004 Sh Sub (1) substituted by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 495 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 496 Para () amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 497 Para (d) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 498 Subs (2) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 499 Subs (3) amended by Inome Tax (Corporate Taxpayers) At 2006 s 13 (transitional provisions SD523/06 art 2) and by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 500 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 501 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 502 S A108 inserted by Inome Tax (Amendment) At 2004 Sh Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 504 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 505 Subs (1) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. AT 3 of 1970 Page 209

210 Endnotes Inome Tax At Subs (2) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 507 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 508 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 509 Subs (3) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 510 Subs (4) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 511 Subs (5) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 512 Subs (6) amended by Inome Tax (Corporate Taxpayers) At 2006 s 13 (transitional provisions SD523/06 art 2). 513 Subs (7) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 514 Subs (8) amended by Inome Tax (Amendment) At 2006 s S B108 inserted by Inome Tax (Amendment) At 2004 Sh Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 517 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 518 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 519 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 520 Subs (3) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 521 Subs (4) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 522 S C108 inserted by Inome Tax (Amendment) At 2004 Sh Para amended by Inome Tax (Amendment) At 2006 s 11 and by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 524 Subs (1) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 525 Item amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 526 Subs (1A) inserted by Inome Tax (Amendment) At 2006 s Subs (1B) inserted by Inome Tax (Amendment) At 2006 s Subs (2) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 529 S D108 inserted by Inome Tax (Amendment) At 2004 Sh 3. Page 210 AT 3 of 1970

211 Inome Tax At 1970 Endnotes 530 Subs (1) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 531 Subs (3) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 532 S E108 inserted by Inome Tax (Amendment) At 2004 Sh Heading inserted by Inome Tax (Amendment) At 2004 Sh Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 535 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 536 Para () amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 537 Para (d) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 538 Subs (1) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 539 Subs (3) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 540 S F108 inserted by Inome Tax (Amendment) At 2004 Sh Para () amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 542 Subs (2) amended by Civil Partnership At 2011 Sh Para amended by Colletive Investment Shemes At 2008 Sh Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 545 S G108 inserted by Inome Tax (Amendment) At 2004 Sh Para () amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 547 S H108 inserted by Inome Tax (Amendment) At 2004 Sh Heading amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 549 Subs (1) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 550 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 551 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 552 Para () amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 553 Subs (2) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 554 Subs (3) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. AT 3 of 1970 Page 211

212 Endnotes Inome Tax At Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 556 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 557 Subs (6) amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 558 S I108 inserted by Inome Tax (Amendment) At 2004 Sh Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 560 Para amended by SD98/12 and onfirmed by Inome Tax At 2013 s 2, effetive tax year ommening 6/4/2012 and thereafter. 561 S J108 inserted by Inome Tax (Amendment) At 2004 Sh Subs (2) added by Inome Tax (Amendment) At 1986 s Para (e) added by Inome Tax (Amendment) At 1986 s Subs (1) substituted by Inome Tax At 1973 s 17 and amended by Inome Tax (Amendment) At 1986 s Subs (3) added by Inome Tax (Amendment) At 1986 s Subs (4) added by Inome Tax At 1989 s Ed. note: The presribed rate of interest is 5% per year, but the Order does not apply to ases under s 111A(1A) see SD961/08 para Subs (1) amended by Inome Tax (Amendment) At 2004 s Para amended by Inome Tax (Amendment) At 2006 s Subs (1A) inserted by Inome Tax (Amendment) At 2004 s Subs (9) amended by Statute Law Revision At 1989 Sh 1 and by Inome Tax (Amendment) At 2004 s S 111A inserted by Inome Tax Et. (Amendment) At 1985 s S 111B substituted by Inome Tax (Corporate Taxpayers) At 2006 s 16 (transitional provisions SD523/06 art 2). 574 Heading inserted by Inome Tax (Amendment) At 2004 Sh S 111C inserted by Inome Tax (Amendment) At 2004 Sh S 111D inserted by Inome Tax (Amendment) At 2004 Sh S 111E inserted by Inome Tax (Amendment) At 2004 Sh S 111F inserted by Inome Tax (Amendment) At 2004 Sh S 111G inserted by Inome Tax (Amendment) At 2004 Sh S 111H inserted by Inome Tax (Amendment) At 2004 Sh S 111I inserted by Inome Tax (Amendment) At 2004 Sh S 111J inserted by Inome Tax (Amendment) At 2004 s S 112A inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 584 S 112B inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 585 Para amended by Inome Tax At 2009 Sh 1. Page 212 AT 3 of 1970

213 Inome Tax At 1970 Endnotes 586 S 112C inserted by Inome Tax (Corporate Taxpayers) At 2006 s S 112D inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 588 S 112E inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 589 S 112F inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 590 S 112G inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 591 S 112H inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 592 S 112I inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 593 S 112J inserted by Inome Tax (Corporate Taxpayers) At 2006 s 17 (transitional provisions SD523/06 art 2). 594 S 113 amended by Inome Tax At 1978 s 6 and by Treasury At 1985 Sh Subs (1) amended by Inome Tax At 2009 s 18 effetive tax year ommening 6/4/2009 and thereafter. 596 Subs (2) amended by Treasury At 1985 Sh S 116 substituted by Inome Tax At 1978 s S 118A inserted by Inome Tax (Amendment) At 2006 s Subss (2) to (4) expired 6 April 1989 inserted by Inome Tax (Amendment) At 1986 s S 119A inserted by Inome Tax At 1989 s S119B inserted by Inome Tax At 1995 s Subs (2) amended by Civil Partnership At 2011 Sh Subs (4) amended by Civil Partnership At 2011 Sh Definition of unit trust sheme amended by Colletive Investment Shemes At 2008 Sh S 119C inserted by Inome Tax At 1995 s S 119D inserted by Inome Tax At 2003 s Subs (8) added by Inome Tax (Amendment) At 2008 s 7(4) in operation 1/11/2006 and appliable in respet of that part of the year of assessment, or in the ase of a orporate taxpayer, that part of the aounting period, ommening on that date and ending on 5/4/ 2007 and in respet of every subsequent year or period. 608 S 119E inserted by Inome Tax (Corporate Taxpayers) At 2006 s 2 (transitional provisions SD523/06 art 2). 609 S 119F inserted by Inome Tax (Corporate Taxpayers) At 2006 s 2 (transitional provisions SD523/06 art 2). 610 Setion 119G inserted by Inome Tax At 2011 s Definition of 2006 At ompany inserted by Inome Tax (Amendment) At 2008 s 7 operative 1/11/2006 and appliable for that part year of assessment aounting period and in respet of every subsequent year or period. AT 3 of 1970 Page 213

214 Endnotes Inome Tax At Definition of 1986 At ompany inserted by Inome Tax At 2000 s Definition of assessment and assessed inserted by Inome Tax (Corporate Taxpayers) At 2006 (transitional provisions SD523/06 art 2). 614 Para (ba) inserted by Foundations At 2011 s Definition of orporate taxpayer inserted by Inome Tax (Amendment) At 2004 s Definition of the Governor in Counil inserted by Inome Tax (Amendment) At 1979 Sh 1 and amended by Counil of Ministers At 1990 s Definition of group relief inserted by Inome Tax At 1980 Sh Definition of member inserted by SD98/12 and onfirmed by Inome Tax At 2013 s Definition of non-orporate taxpayer inserted by Inome Tax (Amendment) At 2004 s Para amended by Inome Tax (Amendment) At 2004 s Definition of taxable inome substituted by Inome Tax At 1980 Sh Definition of traded option inserted by Inome Tax (Amendment) At 1986 s Definition of Treasurer repealed by Treasury At 1985 Sh Definition of Treasury inserted by Treasury At 1985 Sh S 121 repealed by Statute Law Revision At 1983 Sh Sh 1 substituted by Inome Tax At 1989 s Sh 1A inserted by Inome Tax (Amendment) At 1986 Sh Sh 1B inserted by Inome Tax At 1989 Sh 1 and substituted by Inome Tax At 2009 s 8 effetive tax year ommening on 6/4/2009 and thereafter. 629 Sh 2A inserted by Inome Tax At 1995 s Sh 3 repealed by Statute Law Revision At 1983 Sh 2. Page 214 AT 3 of 1970