960OWinding-up of companies: priority for taxes.

(1) In this section—

^[4]>“Act of 1963” means the Companies Act 1963^<[4][4]>“Act of 2014” means the Companies Act 2014^<[4];

“Act of 2010” means the Value-Added Tax Consolidation Act 2010;

“relevant date” has the same meaning as in ^[5]>section 285 of the Act of 1963^<[5][5]>section 621 of the Act of 2014^<[5];

“relevant period” means—

(a) in paragraph (a)(i) of subsection (4) and in paragraphs (b) and (c) of that subsection, the 12 month period next before the date that is 14 days after the end of the income tax month in which the relevant date occurred;

(b) in subparagraphs (ii) to (v) of subsection (4)(a), the 12 month period referred to in the relevant subsection;

“relevant subsection” means subsection (2)(a)(iii) of ^[6]>section 285 of the Act of 1963.^<[6][6]>section 621 of the Act of 2014.^<[6]

(2) For the purposes of ^[7]>section 98 of the Act of 1963^<[7][7]>section 440 of the Act of 2014^<[7] and the relevant subsection, the amount referred to in the relevant subsection is deemed to include corporation tax and capital gains tax.

(3) (a) Any value-added tax, including interest payable on that value-added tax in accordance with section 114 of the Act of 2010, for which a company is liable for taxable periods (within the meaning of that Act) which ended within the period of 12 months next before the relevant date are to be included among the debts which under ^[8]>section 285 of the Act of 1963^<[8][8]>section 621 of the Act of 2014^<[8] are to be paid in priority to all other debts in the winding up of the company.

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(b) For the purposes of section 98 of the Act of 1963, paragraph (a) is deemed to be included in section 285 of that Act.

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(b) For the purposes of section 440 of the Act of 2014, paragraph (a) is deemed to be included in section 621 of that Act.

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(4) (a) For the purposes of ^[10]>section 98 of the Act of 1963^<[10][10]>section 440 of the Act of 2014^<[10] and the relevant subsection, the amount referred to in the relevant subsection is deemed to include—

(i) so much as is unpaid of an authorised employer’s PAYE liability,

(ii) amounts of tax ^[2]>deducted under section 531(1)^<[2][2]>due and payable under Chapter 2 of Part 18 and regulations made under that Chapter^<[2] that relate to a period or periods falling in whole or in part within the relevant period,

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(iii) amounts of tax recoverable under Regulation 14 of the RCT Regulations that relate to a period or periods falling in whole or in part within the relevant period,

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(iv) amounts of tax to which section 989 applies that relate to a period or periods falling in whole or in part within the relevant period,

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(v) amounts of tax to which section 990 applies that relate to a period or periods falling in whole or in part within the relevant period.

(b) In the case of any amount referred to in subparagraphs (ii) to (v) of paragraph (a) for a period falling partly within and partly outside the relevant period, the total sum or amount is to be apportioned according to the respective lengths of the periods falling within the relevant period and outside of that period so as to determine the amount of tax that relates to the relevant period.

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(c) For the purposes of paragraph (a)(i) “authorised employer’s PAYE liability”, in relation to an employer authorised under Regulation 29 of the PAYE Regulations, means the amount determined by the formula—

(A + B − C) + D

where—

A is any amount which, apart from Regulation 29 of the PAYE Regulations, would otherwise have been an amount due at the relevant date in respect of sums that the employer is liable under Chapter 4 and the PAYE Regulations (other than Regulation 29 of those Regulations) to deduct from emoluments paid by the employer during the relevant period,

B is any amount which, apart from Regulation 29 of the PAYE Regulations, would otherwise have been an amount due at the relevant date in respect of sums that were not so deducted but which the employer was liable, in accordance with section 985A and any regulations under that section, to remit to the Collector-General in respect of notional payments made by the employer during the relevant period,

C is any amount which the employer was liable under Chapter 4 and the PAYE Regulations to repay during the relevant period, and

D is any interest payable under section 991 in respect of the amounts referred to in the meanings of A and B.

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(c) For the purposes of paragraph (a)(i), “authorised employer’s PAYE liability”, in relation to an employer whose due date for the payment of tax has been varied by way of a notice under section 985G(7), means the amount determined by the formula—

(A + B - C) + D

where—

A is any amount which, if a notice under section 985G(7) was not issued, would have been an amount due at the relevant date in respect of sums that the employer is liable under Chapter 4 and the Income Tax Regulations to deduct from emoluments paid by the employer during the relevant period,

B is any amount which, if a notice under section 985G(7) was not issued, would have been an amount due at the relevant date in respect of sums that were not so deducted but which the employer was liable, in accordance with section 985A and any regulations under that section, to remit to the Collector-General in respect of notional payments made by the employer during the relevant period,

C is any amount which the employer was liable under Chapter 4 and the Income Tax Regulations to repay during the relevant period, and

D is any interest payable under section 991 in respect of the amounts referred to in the meanings of A and B.

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