Finance Bill

Session 2012 - 13
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Finance Bill

Finance 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 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 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 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 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 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 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