Regulation 40 Allocation of payments

(1)

This regulation applies where an insurer pays an amount of tax to the Commissioners and—

(a)

at the time of the payment there exists a tax debt of his by virtue of his being liable to pay tax which has been assessed under regulation 35;

(b)

at the time of the payment there exists a tax debt of his which—

(i)

is not within sub-paragraph (a) above; and

(ii)

relates to an accounting period which corresponds to any extent with the period by reference to which the assessment referred to in sub-paragraph (a) above was made; and

(c)

the amount of the payment is not sufficient to satisfy all his tax debts in full.

(2)

Where this regulation applies and the payment would not otherwise be applied as described in this paragraph, the payment shall be applied to reduce or extinguish the tax debt within paragraph (1)(a) above before it is applied to any other tax debt.

(3)

Where—

(a)

this regulation applies;

(b)

there are two or more tax debts within paragraph (1)(a) above; and

(c)

the payment is not sufficient to satisfy those tax debts in full,

there shall be applied to each such tax debt such proportion of the payment as bears the same relationship to the whole of the payment as does the tax debt to the total of those tax debts.