(3) A direction under sub-paragraph (2) may apply generally or only to a
particular case or class of case.

(4) HMRC may agree with a registered person to make either or both of the
following changes for the purposes of that person’s liability to machine
5games duty—

(a) to treat specified periods (whether longer or shorter than 3 months)
as accounting periods,

(b) to begin accounting periods on days other than those applying by
virtue of sub-paragraph (2).

(5) 10HMRC may by direction make transitional arrangements for periods
(whether of 3 months or otherwise) to be treated as accounting periods
where—

(a) a person becomes or ceases to be registered, or

(b) an agreement under sub-paragraph (4) begins or ends.

(6) 15If there is reason to believe that a person who is liable for machine games
duty may not discharge that liability as it falls due from time to time—

(a) HMRC may by direction specify shorter periods to be treated as
accounting periods for the purposes of that person’s liability to
machine games duty,

(b) 20any such direction continues to have effect until it is withdrawn by
HMRC (unless otherwise specified in the direction), and

(c) withdrawal of a direction does not prevent the giving of further
directions in respect of the same person.

Valuing prizes

(1) 25This paragraph applies in valuing prizes for the purposes of this Schedule
(including in determining the maximum amount of cash that can be won
from playing a machine game).

(2) The value of a prize includes any portion that—

(a) represents a refund of the charge payable for playing the game, or

(b) 30is calculated by reference to the amount of any such charge.

(3) The value of a prize in the form of something that is reasonably considered
to equate to money is equal to the amount of money to which the thing is
reasonably considered to equate.

(4) For a prize in the form of a currency other than sterling or in the form of
35something that is reasonably considered to equate to such a currency—

(a) the value of the prize is, in relation to any day, the sterling equivalent
of that currency determined by reference to the London closing rate
for that currency for the previous day, and

(b) for the purposes of paragraph 7(3), the day in relation to which the
40value is assessed is the last day of the relevant accounting period.

(5) The value of a prize other than cash depends on the person (“A”) from whom
the person paying out the prize (“B”) obtained it—

(a) if A was not connected with B when B obtained the prize from A, the
value is the cost to B of obtaining the prize from A,

(b) 45if A was connected with B when B obtained the prize from A, the
value is the smaller of—

(i) the cost to B of obtaining the prize from A, and

(ii) the amount that it would have cost B, at the time B obtained
the prize, to obtain it from a person not connected with B.

(6) Whether A is connected with B is to be determined in accordance with
5section 1122 of CTA 2010.

(7) If the value of a prize other than cash cannot reasonably be determined in
accordance with sub-paragraph (5), the value of the prize is such amount as
is just and reasonable.

(8) For the purposes of sub-paragraph (5), an amount paid by way of value
10added tax on the acquisition of a thing is to be treated as part of its cost
(whether or not the amount is taken into account for the purpose of a credit
or refund).

(9) The Commissioners may by regulations make further provision about the
way in which prizes are to be valued for the purposes of this Schedule.

(10) 15This paragraph applies to a part of a prize as it applies to a whole prize, and
references to a prize are to be read accordingly.

Valuing charges

(1) This paragraph applies in determining for the purposes of this Schedule the
amount of a charge (or the highest or lowest charge) payable or due for
20playing a machine game.

(2) If the amount of a charge in money’s worth cannot be determined, it is
assumed to be such amount as is just and reasonable.

(3) If a composite charge is payable or due for the opportunity to play a machine
game more than once, the amount of the charge payable or due for each
25individual go is to be determined on a just and reasonable basis.

(4) If a composite charge is payable or due for the opportunity to play a machine
game and for something else, the amount of the charge payable or due for
playing the game is to be determined on a just and reasonable basis.

(5) The Commissioners may by regulations make further provision about the
30way in which the amount of charges is to be determined for the purposes of
this Schedule.

(6) Sub-paragraph (7) applies if—

(a) a dutiable machine game is played in pursuance of an offer that
permits the player to pay nothing or less than the charge that the
35player would have been required to pay without the offer,

(b) the offer was made available to the player by way of winnings from
an activity in respect of which another duty of excise or value added
tax is charged, and

(c) the value of the offer is deductible in calculating the amount of that
40other duty or value added tax payable in respect of that activity.

(7) The amount of the charge due from the player for playing the dutiable
machine game is taken for the purposes of paragraph 7 to be the amount that
the player would have been required to pay without the offer.

(8) Regulations under sub-paragraph (5) may include provision extending or
modifying the circumstances in which sub-paragraph (7) applies.

Collection and management

17 The Commissioners are responsible for the collection and management of
5machine games duty.

Returns

(1) The Commissioners may make regulations requiring registrable persons to
make returns to HMRC in respect of relevant machines.

(2) Regulations under this paragraph may in particular make provision about—

(a) 10liability to make a return,

(b) timing,

(c) form,

(d) content,

(e) method of making (including provision requiring returns to be made
15electronically),

(f) declarations,

(g) authentication, and

(h) when a return is to be treated as made.

Assessment and payment

(1) 20The Commissioners may make regulations about payment of machine
games duty.

(2) The regulations may in particular make provision about—

(a) timing,

(b) instalments,

(c) 25methods of payment (including provision requiring payments to be
made electronically),

(d) when payment is to be treated as made, and

(e) the process and effect of assessments by HMRC of amounts due.

(3) Subject to regulations under this paragraph, section 12 of FA 1994
30(assessment) applies in relation to liability to pay machine games duty.

Registration

(1) The Commissioners must maintain a register of those responsible for
premises where relevant machines are located.

(2) The register is to be known as the MGD register.

(3) 35A person must not make a relevant machine available for use by others for
playing dutiable machine games on it unless a registrable person (whether
that person or someone else) is registered in respect of the premises where
the machine is located.

(4) Paragraph 21 identifies who is a registrable person in respect of premises.

(5) This paragraph does not apply in relation to a relevant machine if it is
reasonable to expect that the only takings and the only payouts in respect of
the machine would be amounts that would be left out of account by virtue
of paragraph 8.

5Registrable persons

(1) If a person holds a relevant licence or permit in respect of premises, that
person is a registrable person in respect of those premises.

(2) But if the premises are leased to a person (“T”) for the purposes of an activity
for which an alcohol licence is required and the alcohol licence in respect of
10the premises is held by someone else, T (and not the licence-holder) is a
registrable person in respect of those premises.

(3) If the premises are a stall at a travelling fair, each of the following is a
registrable person in respect of the premises—

(a) the holder of the stall, and

(b) 15the person in charge of the fair.

(4) For premises not falling within any of the preceding sub-paragraphs, each
person listed in sub-paragraph (5) is a registrable person in respect of the
premises.

(5) The persons are—

(a) 20a person required to hold a relevant licence or permit in respect of the
premises,

(b) an owner, lessee or occupier of the premises,

(c) a person who is responsible to the owner, lessee or occupier for the
management of the premises,

(d) 25a person who is responsible for controlling the use of machines that
are made available on the premises for use by others for playing
dutiable machine games on them, and

(e) a person who is responsible for controlling the admission of persons
to the premises or for providing persons resorting to the premises
30with goods or services.

(6) “Relevant licence or permit” is defined in paragraph 22.

(7) “Alcohol licence” means—

(a) a premises licence issued under Part 3 of the Licensing Act 2003 that
authorises the supply of alcohol for consumption on the licensed
35premises,

(b) a premises licence issued under Part 3 of the Licensing (Scotland) Act
2005, except where such a licence only applies to the sale of alcohol
for consumption off the premises, and

(c) a licence issued under the Licensing (Northern Ireland) Order 1996
40(S.I. 1996/3158 (N.I. 22)S.I. 1996/3158 (N.I. 22)), except where such a licence only applies to
the sale of intoxicating liquor by retail for consumption off the
premises.

(8) “Travelling fair” means a fair—

(a) consisting wholly or principally of the provision of amusements,

(b) 45provided wholly or principally by persons who travel from place to
place for the purpose of providing such fairs, and

(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.

(1) A “relevant licence or permit” is—

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

(b) 5a family entertainment centre gaming machine permit as defined in
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) 10an on-premises alcohol licence or a relevant Scottish licence as
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
15of the same premises,

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

(i) a bookmaking office licence within the meaning of that Order,

(j) 20a bingo club licence within the meaning of that Order,

(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)S.I. 1996/3159 (N.I. 23)), or

(m) a licence issued under the Licensing (Northern Ireland) Order 1996
25(S.I. 1996/3158 (N.I. 22)S.I. 1996/3158 (N.I. 22)) but only if a licence, permit or certificate
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
30the list in sub-paragraph (1).

Compulsory registration

(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
35games on it, and

(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) 40A person to whom a registration notice is given may appeal to an appeal
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
45for use by others for playing dutiable machine games on them.

(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) 5an appeal made within that period is dismissed or withdrawn,

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.

10Procedure for registration, de-registration etc

(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) 15the timing of applications,

(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) 20notification of changes to the register,

(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) 25Those conditions may in particular require—

(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
30to machine games duty.

(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
35business in the United Kingdom, and

(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
40of this Schedule in their application to groups.

(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.

Publication of register

(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) 5The Commissioners may publish the register (or a part of it).

(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) 10But the Commissioners may refuse a request under sub-paragraph (3) if the
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.

15Profit-sharers

(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
20located, and

(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
25none of them is in the United Kingdom.

(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
30unless, within the specified period—

(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
35a registrable person was registered in respect of the premises.

(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,
40HMRC may assess to the best of their judgement an amount equal to P’s
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—

(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) 5that the dutiable machine games in respect of which P is beneficially
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) 10An assessment under this paragraph may relate to more than one machine,
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
15machine games duty assessed under section 12 of FA 1994 and due from P
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) 20But if, after P has paid such an amount, HMRC make an assessment under
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.

25Reviews and appeals

(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
30that section.

(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) 35a decision not to give such a direction,

(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
40representative by virtue of paragraph 24(4)(b).

Interest

(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.

(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.

5Penalties and enforcement

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—

30 10In Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and
excise wrongdoing), in the Table in paragraph 1, after the entry relating to
remote gaming duty insert—

31 In Schedule 55 to FA 2009 (penalty for failure to make returns etc), in the
Table in paragraph 1, after item 28 insert—

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) 25paragraph 13F(1).

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—

34 35In that Schedule, in each of the following provisions, for “11M” substitute
“11N”—

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

(b) paragraph 2(c),

(c) paragraph 3(1)(b),

(d) paragraph 8A(1), and

(e) paragraph 8F(1).

(1) 5Contravention of a provision mentioned in sub-paragraph (2) attracts a
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) 10any provision of regulations made under paragraph 19,

(c) paragraph 20(3), and

(d) any provision of regulations made under paragraph 24.

Forfeiture

(1) A machine is liable to forfeiture if—

(a) 15an officer of Revenue and Customs finds it on any premises,

(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) 20Condition A is that—

(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
25duty has become due and payable in respect of the machine, but has not been
paid.

Offences

(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
30any other person) of any machine games duty.

(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
35months or a fine not exceeding the maximum amount, or both,

(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) 40In the application of this paragraph—

(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,