Clause 2

by deleting subsection (12) and substituting the following subsections:“(12) Except as the Comptroller otherwise allows, where —

a taxable person fails to pay his supplier the consideration or any part thereof for the supply of any goods or services made by his supplier to him; and

the taxable person has credited under subsection (2) the input tax to which the consideration or the part thereof which he failed to pay relates,the taxable person shall account of an amount equal to such input tax —

in the prescribed accounting period during which the initial specified period expires; and

in accordance with the method which he was required to use when he first credited the input tax,and the taxable person shall repay such amount to the Comptroller at the same time as any tax in respect of the prescribed accounting period would be payable by him.(12A) Where a taxable person —

has complied with subsection (12); and

during the subsequent specified period, pays his supplier the whole or part of the consideration for the supply of goods or services referred to in subsection (12)(a),the taxable person shall be entitled to treat an amount equal to the input tax relating to the payment referred to in paragraph (b) as if it were input tax for the prescribed accounting period during which the payment was made.”; and

by inserting, immediately after subsection (14), the following subsection:“(15) In this section —“initial specified period” means a period of 12 months from the due date for payment of the consideration or the part thereof, as the case may be, by the taxable person to his supplier;“subsequent specified period” means a period commencing on the day immediately following the end of the initial specified period, and ending on a day 6 years from the end of the prescribed accounting period during which the relevant input tax was first credited under subsection (2).”.