FA98/S36 provides for group payment arrangements. It allows the
Board to offer companies in a group the facility to have one
company pay tax on behalf of all of them.
The arrangements mean that:
A group payment arrangement is more flexible than a repayment
surrender under FA89/S102 for neutralising the effect of the credit
and debit interest rates differential.
Note: A group payment arrangement transfers the responsibility for making payments of tax to the nominated company not the actual tax liability of the participating companies. (See CTM97420 for the definitions of nominated company and participating company.)
Group payment arrangements are machinery provisions only and do not affect the computation of any company's liability to tax.
They do not prevent a company from being pursued for payment of tax if legal proceedings to enforce payment are required after the closing date. (For a definition of 'closing date' see CTM97500.)