Clause 8

by deleting the word “Where” in subsection (1) and substituting the words “Subsection (1A) applies where”;

by deleting the word “or” at the end of subsection (1)(c);

by deleting paragraph (d) of subsection (1) and substituting the following paragraphs:“(d)to obtain for any person any credit for or refund of input tax or any increase of such credit or refund —

which would not otherwise have been obtained; or

which would not otherwise have been obtained at the time at which it was obtained; or

to obtain for any person any refund of tax chargeable, or any increase of any refund of tax chargeable, on a claim made in the case of a bad debt pursuant to regulations made under section 25, which would not otherwise have been obtained.”;

by deleting the words “the Comptroller may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary the arrangement and make such adjustments as he considers appropriate so as to counteract any tax advantage obtained or obtainable by that person from or under that arrangement.” in subsection (1);

by inserting, immediately after subsection (1), the following subsections:“(1A) Without affecting any validity that the arrangement may have in any other respect or for any other purpose, the Comptroller must disregard or vary the arrangement and make any adjustment that the Comptroller considers appropriate so as to counteract any tax advantage obtained or obtainable by that person from or under that arrangement.(1B) An adjustment under subsection (1A) includes an adjustment that results in one or more of the following (called in this section and section 47A additional tax):

an increase in the amount of the tax payable by a person in relation to any prescribed accounting period;

a reduction in the amount of credit for input tax claimed by a person under sections 19 and 20 in relation to any prescribed accounting period;

a reduction in the amount of the refund of tax chargeable, on a claim made by a person in the case of a bad debt pursuant to regulations made under section 25 in relation to any prescribed accounting period.”;

by deleting the words “Without prejudice to the generality of subsection (1)” in subsection (2) and substituting the words “Without affecting subsection (1A)”;

by inserting, immediately after subsection (2), the following subsections:“(2A) An adjustment under subsection (1A) must not be made more than 5 years after the end of the prescribed accounting period in relation to which the adjustment is to be made.(2B) Nothing in this section prevents the applicability of subsection (1) to a case, or any action of the Comptroller under subsection (1A) in a case, from being questioned in an appeal under Part VIII lodged against an assessment.(2C) Despite any objection under section 49 to or appeal under Part VIII lodged against any additional tax, the additional tax must be paid to the Comptroller —

within one month after the date a written notice of the adjustment is served in accordance with section 87(1) on the person to whom the adjustment is made; and

in the manner stated in the notice.(2D) The Comptroller may, in the Comptroller’s discretion, and subject to any term and condition (including the imposition of interest on the additional tax) as the Comptroller may impose, extend the time specified in subsection (2C) within which payment is to be made.”;

by inserting, immediately after the words “this section” in subsection (3), the words “and section 47A”;

by deleting paragraph (b) of the definition of “tax advantage” in subsection (3) and substituting the following paragraph:“(b)any entitlement, earlier entitlement or increase in entitlement of a person to a credit for or refund of input tax;”;

by deleting the word “or” at the end of paragraph (c) of the definition of “tax advantage” in subsection (3);

by deleting the full-stop at the end of paragraph (d) of the definition of “tax advantage” in subsection (3) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph:“(e)any entitlement or increase in entitlement of a person to a refund of tax chargeable, on a claim made in the case of a bad debt pursuant to regulations made under section 25.”;

by deleting the word “shall” in subsection (4) and substituting the word “does”; and

by deleting the word “may” in the section heading and substituting the word “to”.