Finance (No. 2) Act 2023 · Updated to 29 Dec 2023 · Chapter 16
223. Refund of over-payments under Part XI
Feedback & supportSubject to this section, where it is proved to the satisfaction of the Director General that any
Constituent Entity has paid tax for any Financial Year in excess of the amount payable under this Part, that Constituent
Constituent Entity
“Constituent Entity” means— (a) any Entity that is included in a Group; or (b) any Permanent Establishment of a Main Entity that is within paragraph (a) and which is treated as separate from the Main Entity and any other Permanent Establishment of that Main Entity, but does not include an Excluded Entity;
Entity shall be entitled to have the excess refunded by the
Entity
“Entity” means— (a) any legal person (other than a natural person); or (b) an arrangement that prepares separate financial accounts, such as a partnership or trust;
Government and, where that Constituent Entity is dissatisfied with the amount to be refunded to it, the Constituent Entity may within thirty days of being notified of that amount appeal to the Special Commissioners as if the notification were a notice of assessment, the provisions of this Act relating to appeals applying accordingly with any necessary modifications.
Where a Constituent Entity has furnished a return in accordance with section 202 to the Director General for a
Financial Year and that Constituent Entity has paid tax in excess of the amount payable—
Financial Year
“Financial Year” means an accounting period with respect to which the Ultimate Parent Entity of the Multinational Enterprise Group prepares its Consolidated Financial Statements and in the case of Consolidated Financial Statements as defined in paragraph (d) of the definition of “Consolidated Financial Statements”, Financial Year means the calendar year;
that return shall be deemed to be a notification under subsection (1); and
that Constituent Entity is deemed to have been notified of the excess amount on the day that return is furnished.
No claim for repayment under this section shall be valid unless it is made within five Financial Years after the end of the Financial Year to which the claim relates or, where the claim relates to repayment of tax charged by an assessment, within five Financial Years after the end of the
Financial Year within which that assessment was made.
Nothing in this section shall operate—
to extend any time limit for appeal, validate any appeal which is otherwise invalid or authorize the revision of any assessment or other matter which has become final and conclusive; or
to compel the Government to refund the excess amount of tax paid (by deduction or otherwise)
in respect of an assessment unless the assessment has been finally determined.
Any amount of excess in respect of tax payable for a
Financial Year which is to be refunded to a Constituent Entity under subsection (1) may be utilized by the Director General for the payment of any other amount of tax which is due and payable (including any amount of instalments which are due and payable) by that Constituent Entity under this Act.
Where amount of excess in respect of a Constituent Entity is ascertained in accordance with subsection 111(4a) of this Act such excess shall be applied for the payment of tax which is due and payable (including any amount of instalments which are due and payable) by that Constituent
Entity under this Part.
For the avoidance of doubt, sections 111b and 111c shall apply accordingly.