Session 2010 - 12
Internet Publications
Other Bills before Parliament

Finance (No. 4) Bill


Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

548

 

(c)   

held at a place no part of which has been used for the provision of

such a fair on more than 27 days in the same calendar year.

22    (1)  

A “relevant licence or permit” is—

(a)   

a licence issued under Part 8 of the Gambling Act 2005,

(b)   

a family entertainment centre gaming machine permit as defined in

5

section 247 of that Act,

(c)   

a club gaming permit as defined in section 271 of that Act,

(d)   

a club machine permit as defined in section 273 of that Act,

(e)   

a prize gaming permit as defined in section 289 of that Act,

(f)   

an on-premises alcohol licence or a relevant Scottish licence as

10

defined, in each case, in section 277 of that Act but only if a licence or

permit listed above is not held in respect of the same premises,

(g)   

a club premises certificate granted under Part 4 of the Licensing Act

2003 but only if a licence or permit listed above is not held in respect

of the same premises,

15

(h)   

a certificate of registration within the meaning of the Betting,

Gaming Lotteries and Amusements (Northern Ireland) Order 1985

(S.I. 1985/1204 (N.I. 11)),

(i)   

a bookmaking office licence within the meaning of that Order,

(j)   

a bingo club licence within the meaning of that Order,

20

(k)   

an amusement permit within the meaning of that Order,

(l)   

a certificate of registration within the meaning of the Registration of

Clubs (Northern Ireland) Order 1996 (S.I. 1996/3159 (N.I. 23)), or

(m)   

a licence issued under the Licensing (Northern Ireland) Order 1996

(S.I. 1996/3158 (N.I. 22)) but only if a licence, permit or certificate

25

listed above is not held in respect of the same premises.

      (2)  

In sub-paragraph (1), “listed above” means listed in any of the preceding

provisions of that sub-paragraph.

      (3)  

The Treasury may by order amend this paragraph to add to, vary or restrict

the list in sub-paragraph (1).

30

Compulsory registration

23    (1)  

Sub-paragraph (2) applies if—

(a)   

it appears to HMRC that a relevant machine is being made available

by anyone at premises for use by others for playing dutiable machine

games on it, and

35

(b)   

no-one is registered in respect of the premises.

      (2)  

HMRC may give a notice under this paragraph to any person they believe to

be a registrable person in respect of the premises.

      (3)  

The notice is referred to as a “registration notice”.

      (4)  

A person to whom a registration notice is given may appeal to an appeal

40

tribunal against the notice.

      (5)  

The appeal may be made on either or both of the following grounds—

(a)   

that the person is not a registrable person in respect of the premises,

(b)   

that relevant machines are not being made available at the premises

for use by others for playing dutiable machine games on them.

45

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

549

 

      (6)  

The appeal must be made within the period of 30 days beginning with the

date of the registration notice.

      (7)  

If—

(a)   

no appeal is made within that period, or

(b)   

an appeal made within that period is dismissed or withdrawn,

5

           

HMRC may proceed to register the person in respect of the premises (unless

another person has since become registered in respect of them).

      (8)  

Registration under this paragraph is treated as made with effect from the

date of the registration notice.

Procedure for registration, de-registration etc

10

24    (1)  

The Commissioners may make regulations about registration.

      (2)  

Regulations under this paragraph may in particular make provision about—

(a)   

the procedure for applying for registration (including provision

requiring applications to be made electronically),

(b)   

the timing of applications,

15

(c)   

the information to be provided,

(d)   

the giving of registration notices and the making of appeals against

them,

(e)   

the procedure for compulsory registration under paragraph 23,

(f)   

notification of changes to the register,

20

(g)   

de-registration, and

(h)   

re-registration after a person ceases to be registered.

      (3)  

The regulations may permit HMRC to make registration, or continued

registration, subject to conditions.

      (4)  

Those conditions may in particular require—

25

(a)   

the provision of security for the payment of machine games duty,

and

(b)   

(in the case of a foreign person) the appointment of a United

Kingdom representative with responsibility for discharging liability

to machine games duty.

30

      (5)  

In sub-paragraph (4) “foreign person” means a person who—

(a)   

in the case of an individual, is not usually resident in the United

Kingdom,

(b)   

in the case of a body corporate, does not have an established place of

business in the United Kingdom, and

35

(c)   

in any other case, does not include an individual who is usually

resident in the United Kingdom.

      (6)  

The regulations may include provision for the registration of groups of

persons; and may provide for the modification of the provisions of this Part

of this Schedule in their application to groups.

40

      (7)  

The modifications may, for example, include a modification ensuring that,

where a representative member of a group is registered in place of the

members, each member will be jointly and severally liable for the duty

payable by the representative member on behalf of the group.

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

550

 

Publication of register

25    (1)  

The MGD register is to contain such details of those who are entered on the

register and of the premises in respect of which they are registered as the

Commissioners think fit.

      (2)  

The Commissioners may publish the register (or a part of it).

5

      (3)  

If they choose not to publish it or they choose to publish only a part of it, the

Commissioners must nonetheless make arrangements for the provision of a

copy of an entry in the register (or the unpublished part of it) to a member

of the public on request.

      (4)  

But the Commissioners may refuse a request under sub-paragraph (3) if the

10

person making the request does not pay a fee specified by the

Commissioners.

      (5)  

The fee must not exceed the reasonable cost (including any indirect cost) of

meeting the request.

Profit-sharers

15

26    (1)  

Sub-paragraph (2) applies if—

(a)   

it appears to HMRC that machine games duty may be chargeable in

respect of a machine,

(b)   

no-one is registered in respect of the premises where the machine is

located, and

20

(c)   

either—

(i)   

HMRC do not know the identity of any of those responsible

for the premises (see paragraph 12), or

(ii)   

HMRC do know the identity of one or more such persons but

none of them is in the United Kingdom.

25

      (2)  

HMRC may give a notice under this paragraph to any person they believe to

be beneficially entitled to a share of the machine’s takings.

      (3)  

The notice must inform the person to whom it is given (“P”) that P will

become liable to pay a share of the duty in accordance with this paragraph

unless, within the specified period—

30

(a)   

P provides HMRC with sufficient information to identify a person in

the United Kingdom who is responsible for the premises, or

(b)   

P satisfies HMRC that, when P became beneficially entitled to a share

of the machine’s takings, P took all reasonable steps to ascertain that

a registrable person was registered in respect of the premises.

35

      (4)  

The specified period is—

(a)   

such period of 30 days or more as is specified in the notice, or

(b)   

such other period as may be agreed between HMRC and P.

      (5)  

If P fails to satisfy sub-paragraph (3)(a) or (b) within the specified period,

HMRC may assess to the best of their judgement an amount equal to P’s

40

share of the machine games duty that would have been due in respect of the

machine for an accounting period on the assumptions set out in sub-

paragraph (6).

      (6)  

The assumptions are—

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

551

 

(a)   

that P had been liable for machine games duty in respect of the

machine in the accounting period in accordance with paragraph 11,

(b)   

that the machine had been the only machine in respect of which P

was so liable, and

(c)   

that the dutiable machine games in respect of which P is beneficially

5

entitled to a share of the takings had been the only dutiable machine

games played on the machine.

      (7)  

P’s share is a percentage equal to the share of the machine’s takings to which

P is beneficially entitled.

      (8)  

An assessment under this paragraph may relate to more than one machine,

10

more than one set of premises and more than one accounting period.

      (9)  

But it may not relate to a period that began more than 4 years before the date

of the assessment.

     (10)  

An amount assessed under this paragraph is deemed to be an amount of

machine games duty assessed under section 12 of FA 1994 and due from P

15

in accordance with regulations under paragraph 19 of this Schedule.

     (11)  

P is not entitled to any repayment from HMRC of an amount assessed under

this paragraph if HMRC subsequently identify a person responsible for the

premises.

     (12)  

But if, after P has paid such an amount, HMRC make an assessment under

20

section 12 of FA 1994 of an amount of machine games duty due from another

person in respect of the same takings from the same machine for the same

accounting period, account must be taken in that assessment of the amount

paid by P.

Reviews and appeals

25

27    (1)  

The decisions mentioned in sub-paragraph (2) are to be treated as if they

were listed in subsection (2) of section 13A of FA 1994 (customs and excise

reviews and appeals: meaning of “relevant decision”) and, accordingly, as if

they were relevant decisions for the purposes mentioned in subsection (1) of

that section.

30

      (2)  

The decisions are—

(a)   

a decision of HMRC to refuse a request for an agreement under

paragraph 14,

(b)   

a decision to give a direction under that paragraph,

(c)   

a decision not to give such a direction,

35

(d)   

a decision of HMRC under regulations by virtue of paragraph 24(2),

(e)   

a decision of HMRC about security by virtue of paragraph 24(4)(a),

and

(f)   

a decision of HMRC about the appointment of a United Kingdom

representative by virtue of paragraph 24(4)(b).

40

Interest

28    (1)  

This paragraph applies if an order is made under section 104(3) of FA 2009

appointing a day on which sections 101 to 103 of that Act are to come into

force for the purposes of machine games duty.

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

552

 

      (2)  

Interest charged under section 101 of that Act on an amount of machine

games duty (or an amount enforceable as if it were machine games duty)

may be enforced as if it were an amount of machine games duty payable by

the person liable for the amount on which the interest is charged.

Penalties and enforcement

5

29         

In Schedule 24 to FA 2007 (penalties for errors), in the Table in paragraph 1,

after the entry relating to remote gaming duty insert—

 

“Machine games

Return under regulations under

 
 

duty

paragraph 18 of Schedule 24 to FA 2012.”

 

30         

In Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and

10

excise wrongdoing), in the Table in paragraph 1, after the entry relating to

remote gaming duty insert—

 

“Machine games

Obligation under paragraph 20(3) of

 
 

duty

Schedule 24 to FA 2012 (obligation to

 
  

register in respect of premises).”

 

15

31         

In Schedule 55 to FA 2009 (penalty for failure to make returns etc), in the

Table in paragraph 1, after item 28 insert—

 

“29

Machine games

Return under regulations

 
  

duty

under paragraph 18 of

 
   

Schedule 24 to FA 2012”.

 

20

32         

In that Schedule, in each of the following provisions, for “28” substitute

“29”—

(a)   

paragraph 2(1)(b),

(b)   

paragraph 13A(1), and

(c)   

paragraph 13F(1).

25

33         

In Schedule 56 to FA 2009 (penalty for failure to make payments on time), in

the Table in paragraph 1, after item 11M insert—

 

“11N

Machine

Amount payable

The date determined by

 
  

games

under paragraph

or under regulations

 
  

duty

6 of Schedule 24 to

under paragraph 19 of

 

30

   

FA 2012 (except

Schedule 24 to FA 2012

 
   

an amount falling

as the date by which the

 
   

within item 17A,

amount must be paid”.

 
   

23 or 24)

  

34         

In that Schedule, in each of the following provisions, for “11M” substitute

35

“11N”—

(a)   

items 17A, 23 and 24 of the Table in paragraph 1,

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

553

 

(b)   

paragraph 2(c),

(c)   

paragraph 3(1)(b),

(d)   

paragraph 8A(1), and

(e)   

paragraph 8F(1).

35    (1)  

Contravention of a provision mentioned in sub-paragraph (2) attracts a

5

penalty under section 9 of FA 1994 (penalties) and also attracts daily

penalties under that section.

      (2)  

The provisions are—

(a)   

any provision of regulations made under paragraph 18,

(b)   

any provision of regulations made under paragraph 19,

10

(c)   

paragraph 20(3), and

(d)   

any provision of regulations made under paragraph 24.

Forfeiture

36    (1)  

A machine is liable to forfeiture if—

(a)   

an officer of Revenue and Customs finds it on any premises,

15

(b)   

the officer is satisfied that it is being, has been or is about to be made

available on the premises for use by others for playing dutiable

machine games on it, and

(c)   

condition A or B is met.

      (2)  

Condition A is that—

20

(a)   

no-one is registered in respect of the premises, and

(b)   

there is a serious risk that any machine games duty chargeable in

respect of the machine would not be paid.

      (3)  

Condition B is that the officer is satisfied that an amount of machine games

duty has become due and payable in respect of the machine, but has not been

25

paid.

Offences

37    (1)  

A person commits an offence if the person is knowingly concerned in, or in

the taking of steps with a view to, the fraudulent evasion (by that person or

any other person) of any machine games duty.

30

      (2)  

A person guilty of an offence under this paragraph is liable—

(a)   

on conviction on indictment, to imprisonment for a term not

exceeding 7 years or a fine, or both;

(b)   

on summary conviction, to imprisonment for a term not exceeding 12

months or a fine not exceeding the maximum amount, or both,

35

      (3)  

The maximum amount is the greater of—

(a)   

the statutory maximum, and

(b)   

three times the duty or other amount that is unpaid or the payment

of which is sought to be avoided.

      (4)  

In the application of this paragraph—

40

(a)   

in England and Wales, in relation to an offence committed before the

commencement of section 154(1) of the Criminal Justice Act 2003, or

(b)   

in Northern Ireland,

 
 

Finance (No. 4) Bill
Schedule 24 — Machine games duty
Part 1 — Imposition of duty

554

 

           

the reference in sub-paragraph (2)(b) to 12 months is to be read as a reference

to 6 months.

      (5)  

Section 27 of BGDA 1981 (offences by bodies corporate) has effect for the

purposes of any offence under this paragraph as it has effect for the

purposes of the offences mentioned in that section.

5

Protection of officers

38         

Section 31 of BGDA 1981 applies in relation to machine games duty as it

applies in relation to remote gaming duty.

Orders and regulations

39    (1)  

This paragraph applies to orders and regulations under this Part of this

10

Schedule.

      (2)  

Orders and regulations—

(a)   

may make provision that applies generally or only for specified

purposes,

(b)   

may make different provision for different purposes, and

15

(c)   

may include transitional provision and savings.

      (3)  

Regulations may confer a discretion on HMRC.

      (4)  

Orders and regulations are to be made by statutory instrument.

      (5)  

For the purposes of making an order under paragraph 8(1)(b)—

(a)   

the statutory instrument containing the order must be laid before the

20

House of Commons, and

(b)   

the order ceases to have effect at the end of the period of 28 days

beginning with the day on which it was made unless, during that

period, it is approved by a resolution of the House of Commons.

      (6)  

In reckoning the 28-day period, no account is to be taken of any time during

25

which—

(a)   

Parliament is dissolved or prorogued, or

(b)   

the House of Commons is adjourned for more than 4 days.

      (7)  

An order ceasing to have effect by virtue of sub-paragraph (5)(b) does not

affect—

30

(a)   

anything previously done under the order, or

(b)   

the making of a new order.

      (8)  

A statutory instrument containing an order under paragraph 13(6) or 22(3)

may not be made unless a draft of the instrument has been laid before and

approved by a resolution of the House of Commons.

35

      (9)  

Subject to sub-paragraphs (5) and (8), a statutory instrument containing an

order or regulations is subject to annulment in pursuance of a resolution of

the House of Commons.

Transitional provision

40    (1)  

The Commissioners may by notice direct that regulations under paragraph

40

24 (procedure for registration, de-registration etc) are to apply in relation to

 
 

 
previous section contents continue
 

© Parliamentary copyright
Revised 28 March 2012