INCOME TAX Citation and commencement 1 These Regulations may be cited as the Income Tax (Employments) (Amendment No. 2) Regulations 1995 and shall come into force on 6th April 1995. Interpretation 2 In these Regulations “the principal Regulations ” means the Income Tax (Employments) Regulations 1993 and “regulation” means a regulation of those Regulations. Amendments to the principal Regulations 3 In regulation 42— a in paragraph (2)— i after the word “If” there shall be inserted the words “it appears to the collector that”; ii for the words “the underdeduction” there shall be substituted the words “the failure to deduct the amount which the collector considers should have been but was not deducted ( “the excess amount”)”; iii for the words “the amount of the excess” and “the amount of that excess” there shall be substituted in each case the words “the excess amount”; b in paragraph (3)— i for the words “If the amount” there shall be substituted the words “If it appears to the Board that the amount”; ii for the words “the Board, if they” there shall be substituted the words “and the Board”; iii for the words “may direct that the amount of the excess” there shall be substituted the words “they may direct that the amount which they consider to constitute the excess ( “the excess amount”)”; iv for the words “the amount of that excess” there shall be substituted the words “the excess amount”; c paragraph (5) shall be omitted. 4 In regulation 48— a in paragraph (1) the words “, despite demand being made,” shall be omitted; b in paragraph (6) for the words from “the amount so unpaid” to the end there shall be substituted the words the amount so unpaid— shall be deemed to be an amount of tax which the employer was liable to pay for that income tax period in accordance with regulation 40 or 41, and may be certified by the collector. ; c paragraph (8) shall be omitted. 5 In regulation 49(5)— a for sub-paragraph (b) there shall be substituted— b the Board are of the opinion that an employee in respect of whose emoluments the determination was made has received his emoluments knowing that the employer has wilfully failed to deduct the amount of tax which he was liable to deduct under these Regulations from those emoluments, ; b the words “(without prejudice to the right of recovery from the employer)” shall be omitted; c at the end there shall be added the words “, and, where the Board so direct, the employer shall not be liable to pay that part of that tax to the collector.”. 6 In regulation 55(2) after sub-paragraph (a) there shall be inserted the following sub-paragraph— aa all documents and records whatsoever relating to any particulars which an employer is required to include in a return or returns under regulation 46 in respect of any year specified by the authorised officer; or . 7 In regulation 101— a in paragraph (3) for the words “paragraph (5)” there shall be substituted the words “paragraphs (5) and (6)”; b in paragraph (4)(a) the words from “, having regard to” to the end shall be omitted; c after paragraph (5) there shall be added— 6 Where a direction is made by the collector under regulation 42(2), or by the Board under regulation 42(3) or 49(5), in relation to the employee and in respect of one or more income tax periods falling within the year— a the employee shall not be entitled to include the amount of tax which is the subject of the direction in calculating the amount of tax referred to in paragraph (4)(a); b if the direction follows the making of the assessment, the amount (if any) shown in the notice of assessment as a deduction from, or a credit against, the tax payable under the assessment shall be taken as reduced by the amount of tax which is the subject of the direction. 7 In this regulation “tax payable under the assessment” refers to the amount of tax shown in the assessment as payable without regard to any amount shown in the notice of assessment as a deduction from, or a credit against, the amount of tax payable. . S C T Matheson G H Bush Two of the Commissioners of Inland Revenue 22nd February 1995