Section 940A — Income Tax Act 2007: No appropriate bond or combination of bonds

No appropriate bond or combination of bonds 940A 1 This section applies if—

a the Commissioners for Her Majesty's Revenue and Customs hold one or more bonds tendered in accordance with section 939(4),

b the Commissioners wish to tender bonds in accordance with section 939(4A) in satisfaction of an amount payable to the relevant creditor, and c the Commissioners consider that they do not hold a bond, or combination of bonds, that is appropriate for satisfying the amount payable.

2 If requested to do so by the Commissioners, the bond issuer must secure that the Commissioners hold a bond, or combination of bonds, that the Commissioners consider to be appropriate for satisfying the amount payable.

3 If requested to do so by the bond issuer, a person must assist the bond issuer to comply with subsection (2).

4 The duty under subsection (2), or under subsection (3), does not apply if it would be impracticable for the bond issuer, or the other person, to comply with the duty.

5 The matters which the Commissioners may take into account when considering whether or not a bond or combination of bonds is appropriate for satisfying the amount payable include—

a the value of a bond at the time of its issue, b the interest which the relevant creditor, or any other person, has in a bond (including the nature or size of the interest),

and c the terms on which a bond is issued.

6 For the purposes of this section—

a “ bond issuer ” means the person by or through whom bonds were issued, and b “ relevant creditor ” and “ relevant debt ” have the same meanings as in section 939(4A).