Explanatory note

These Regulations amend the Income Tax (Employments) Regulations 1993 (S.I. 1993/744) ( “the principal Regulations”).

Regulation 1 provides for citation and commencement, and regulation 2 for interpretation.

Regulation 3 amends regulation 42 of the principal Regulations so as to provide that the collector or the Board may make a direction under paragraph (2) or (3) of that regulation that an amount of tax shall be recovered from the employee where it appears to them that the employer has failed to deduct that amount from emoluments paid to the employee (and the other conditions in those paragraphs are satisfied). The terms of the previous wording were to the effect that a direction could not be made unless an underdeduction of tax existed.

Regulation 4 amends regulation 48 of the principal Regulations so as to abolish the requirement that the collector first make a demand for tax liable to be paid by the employer under the Regulations before issuing notice of the specified amount to be paid by the employer. The regulation also amends regulation 48 so as to remove the requirement that the specified amount should be certified by the collector as an amount of unpaid tax.

Regulation 5 amends regulation 49 of the principal Regulations so as to clarify the circumstances in which a direction may be made by the Board under paragraph (5) of that regulation that tax which the employer failed to deduct shall be recovered from the employee, and the consequences of making such a direction.

Regulation 6 amends regulation 55 of the principal Regulations so as to include documents and records relating to particulars required to be included in a return by an employer under regulation 46 of the principal Regulations (return of additional emoluments) in the documents and records which the employer may be required to produce to an officer of the Board for inspection.

Regulation 7 amends regulation 101 of the principal Regulations so as to make clear that, where a direction is made under regulation 42 or 49 of the principal Regulations that an amount of tax shall be recovered from the employee, that amount may not be claimed as a credit by the employee in calculating the amount of tax which he is liable to pay under an assessment.