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

Payment notice: effect of making payment etc.

Section 608R deals with what happens when a person makes a payment under a section 608O notice requiring payment from someone in the same control group as the taxpayer, including rights of recovery, tax treatment of payments and reimbursements, and the effect on outstanding amounts.

• A person who pays an amount under a section 608O notice has the right to recover that amount from the taxpayer
• Reimbursements between the payer and the taxpayer are disregarded for tax purposes — the payment cannot be deducted by the payer and the reimbursement is not treated as taxable income for either party
• Amounts paid under the notice reduce the outstanding tax due under both the main Chapter 2A charging provisions and any other section 608O notices relating to the same unpaid amount
• Payments made directly by the taxpayer towards the unpaid amount similarly reduce what is owed under any section 608O notice and any other related notices