Section HM 41 — Income Tax Act 2007: Options for calculation and payment of tax

HM 41 Options for calculation and payment of tax Available options (1) The options available to a multi-rate PIE for calculating and paying its income tax liability are— (a) the payment of tax calculated under the exit calculation option, see section HM 42 ; or (b) the payment of tax calculated under the quarterly calculation option, see section HM 43 ; or (c) the payment of provisional tax and terminal tax calculated on an income-year basis, see section HM 44 . Default option (2) The PIE must use the default option under subsection (1)(b) unless it chooses an option under subsection (1)(a) or (c) by notifying the Commissioner. Income tax liability (3) The income tax liability of the PIE for the tax year is equal to the total amount calculated under the relevant method for periods in the tax year or, in the case of the provisional tax calculation option under section HM 44 , for the PIE's income year corresponding to the tax year. Foreign investment PIEs (4) Despite subsection (1)(c), a multi-rate PIE that chooses under section HM 71B to become a foreign investment PIE must not use the provisional tax calculation option in section HM 44 to calculate its income tax liability. Defined in this Act: amount , Commissioner , income tax liability , income year , multi-rate PIE , notify , pay , PIE , provisional tax , tax year , terminal tax Compare: 2007 No 97 ss HL 16(3), HL 22–HL 24 Section HM 41: inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section HM 41(4) heading: added, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 72(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 41(4): added, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 72(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).