§ Mr. Denzil DaviesI beg to move Amendment No. 41, in page 25, line 12, at end insert
'and for the words "shall thereupon be payable by the company" there shall be substituted the words "shall be payable by the company upon service of the notice."'.Clause 41 amends paragraph 6(2) of Schedule 16 of the Finance Act 1972 so as to make permissive rather than mandatory the power to use a notice of liability to tax on a close company in respect of the apportionment of its undistributed income. The amendment makes it clear that the company becomes liable to pay tax only if a notice of liability is actually served.837 This arises from the debate in Committee on a similar amendment moved by the right hon. Member for Crosby (Mr. Page). I said then that I did not think that the clause was ambiguous, but that if doubt arose in the right hon. Gentleman's mind, it could arise in the minds of other people and that therefore I would look at the matter. Having done so, I believe that the safe course is to amend the clause in this way.
§ Amendment agreed to.