§ Mr. Newton
I beg to move amendment No. 17, in page 7, line 30 after 'entitling', insert 'except in prescribed circumstances'.
§ Mr. Newton
I should like to say a few words about amendment No. 17. The amendments taken with it are almost entirely technical. I shall be happy to explain them if necessary, but otherwise I prefer to move them formally at the appropriate stage if the Opposition agree.
The effect of amendment No. 17 is to provide power to restrict the entitlement of employer under subsection (1) (a) to make deductions from contributions payments. The circumstances in which this power would be used are intended to be limited.
One proposed use of the power is to set a time limit beyond which an employer cannot deduct. The intention is to prevent recovery more than six years after the end of the tax year in which SSP was paid. That is for reasons of practical administrative necessity, and is in line with what happens in many parts of the tax system.
A second possible use is to preclude an employer from deducting when he has already had a direct payment under subsection (1)(b) for the same amount. That is the sort of situation that we are trying to cover. There is no intention to impose unreasonable conditions; the intention is simply to provide practical arrangements for the working of the scheme.
§ Amendment agreed to.578
No. 19, in page 7, line 41, leave out
'to the Secretary of State'.
No. 20, in page 7, line 43, leave out 'and' and insert
No. 21, in page 8, line 7, at end insert—
'(3A) The power to make regulations conferred by paragraph 5 of Schedule 1 to the principal Act (power to combine collection of contributions with collection of income tax) shall include power to make such provision as the Secretary of State considers expedient in consequence of any provision made by or under this section.
(3B) Provision made in regulations under paragraph 5 of Schedule 1, by virtue of subsection (3A) above, may in particular require the inclusion—
(3C) Where, in accordance with any provision of regulations made under this section, an amount has been deducted from an employer's contribution payments, the amount so deducted shall (except in such cases as may be prescribed) be treated for the purposes of any provision made by or under any enactments in relation to primary or secondary Class 1 contributions as having been—
No. 22, in page 8, line 26, at end insert—
'(7) Subsections (5) and (6) above shall apply, in place of the provision made by section 98 (2) of the Taxes Managements Act 1970 (penalties for providing false information etc.) as applied by paragraph 5 (2) of Schedule 1 to the principal Act, in relation to such requirements of the regulations made under paragraph 5 of Schedule 1 by virtue of subsection (3A) above as may be specified in those regulations. '.—[Mr. Newton.]