Income Tax (Trading and Other Income) Act 2005 section 608P

Payment notice: effect

Section 608P explains what happens when a person in the same control group as a taxpayer receives a payment notice requiring them to pay the taxpayer's unpaid tax on offshore receipts from intangible property.

• The recipient of the payment notice is treated as if the taxpayer's income tax assessment had been made on them, making them personally liable for the unpaid tax and any interest
• The tax is treated as having become due and payable at the same time as the original tax on the taxpayer, meaning interest runs from the original due date
• Any payments already made by the taxpayer towards the original tax or interest are credited against the amount the notice recipient is required to pay
• The notice recipient has no right of appeal against either the original assessment or the deemed assessment, and any appeal by the taxpayer does not affect the notice recipient's liability