Finance Bill (HC Bill 47)

(b) a tobacco product.

(3) “Controlled activity” means any activity involving raw tobacco.

8L 35Raw tobacco: requirement for approval

(1) A person may not carry on a controlled activity otherwise than in
accordance with an approval given by the Commissioners under this
section.

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(2) The Commissioners may approve a person to carry on a controlled
activity only if satisfied that—

(a) the person is a fit and proper person to carry on the activity, and

(b) the activity will not be carried on for the purpose of, or with a
5view to, the fraudulent evasion of the duty of excise charged on
tobacco products under section 2(1).

(3) An approval may—

(a) specify the period of approval, and

(b) be subject to conditions or restrictions.

(4) 10The Commissioners may at any time for reasonable cause revoke or
vary the terms of an approval.

8M Regulations about approval etc.

The Commissioners may, by or under regulations, make provision—

(a) regulating the approval of persons under section 8L,

(b) 15about the form, manner and content of an application for
approval,

(c) specifying conditions or restrictions to which an approval is
subject,

(d) regulating the variation or revocation of an approval, or of any
20condition or restriction to which an approval is subject, and

(e) about the surrender or transfer of an approval.

8N Exemptions from requirement for approval

(1) The Commissioners may by regulations provide that section 8L(1) does
not apply in relation to a person (an “exempt person”) who—

(a) 25carries on any controlled activity, or a controlled activity of a
specified description, and

(b) meets the conditions (if any) specified by or under the
regulations.

(2) The regulations may require an exempt person to comply with
30specified requirements or restrictions relating to the carrying on of a
controlled activity.

(3) The regulations may, in particular—

(a) specify the maximum quantity of raw tobacco that may be
involved in a controlled activity carried on by an exempt
35person;

(b) require an exempt person to keep records relating to the
activity.

8O Raw tobacco: penalties

(1) A person who contravenes section 8L(1) is liable to a penalty of an
40amount equal to the amount of duty that would be charged on the
relevant quantity of smoking tobacco.

(2) A person who contravenes a requirement or restriction imposed by
regulations under section 8N is liable to a penalty of—

(a) £250, or

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(b) if less, an amount equal to the amount of duty that would be
charged on the relevant quantity of smoking tobacco.

(3) The relevant quantity of smoking tobacco is equal to the quantity by
weight of the raw tobacco in respect of which the controlled activity
5contravening section 8L(1) or (as the case may be) regulations under
section 8N has been carried on.

(4) In this section a reference to “smoking tobacco” is a reference to tobacco
products within section 1(1)(d) (“other smoking tobacco”).

8P Penalties under section 8O: special reduction

(1) 10If the Commissioners think it right because of special circumstances,
they may reduce a penalty under section 8O.

(2) In subsection (1) “special circumstances” does not include ability to
pay.

(3) In subsection (1) the reference to reducing a penalty includes a
15reference to—

(a) staying a penalty, and

(b) agreeing a compromise in relation to proceedings for a penalty.

8Q Penalties under section 8O: assessment of penalty

(1) Where a person becomes liable for a penalty under section 8O—

(a) 20the Commissioners may assess the penalty, and

(b) if they do so, they must notify the person liable.

(2) A notice under subsection (1)(b) must state the contravention in respect
of which the penalty is assessed.

(3) A penalty payable under section 8O must be paid before the end of the
25period of 30 days beginning with the day on which the notification of
the penalty is issued.

(4) An assessment is to be treated as an amount of duty due from the
person liable for the penalty and may be recovered accordingly.

(5) An assessment may not be made later than one year after evidence of
30facts sufficient in the opinion of the Commissioners to indicate the
contravention comes to their knowledge.

(6) Two or more contraventions may be treated by the Commissioners as a
single contravention for the purposes of assessing a penalty payable
under section 8O.

8R 35Penalties under section 8O: reasonable excuse

(1) A person is not liable to a penalty under section 8O in respect of a
contravention if—

(a) the contravention is not deliberate, and

(b) the person satisfies the Commissioners that there is a reasonable
40excuse for the contravention.

(2) For the purposes of subsection (1)(b)—

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(a) where the person relies on another person to do anything, that
is not a reasonable excuse unless the first person took
reasonable care to avoid the contravention;

(b) where the person had a reasonable excuse for the relevant act or
5failure but the excuse has ceased, the person is to be treated as
having continued to have the excuse if the contravention is
remedied without unreasonable delay after the excuse has
ceased.

8S Penalties under section 8O: double jeopardy

10A person is not liable to a penalty under section 8O in respect of a
contravention in respect of which the person has been convicted of an
offence.

8T Forfeiture of raw tobacco

Where a person carries on a controlled activity in relation to raw
15tobacco in contravention of section 8L(1) or a requirement or restriction
imposed by regulations under section 8N, the raw tobacco is liable to
forfeiture.

8U Raw tobacco: application of Customs and Excise Management Act 1979

The Commissioners may by regulations provide that specified
20provisions of the Customs and Excise Management Act 1979 apply
(with or without modification)—

(a) in relation to persons who carry on controlled activities as they
apply in relation to revenue traders whose trade or business
relates to tobacco products, and

(b) 25in relation to raw tobacco as they apply in relation to tobacco
products.”

(2) In section 9 of TPDA 1979 (regulations)—

(a) in subsection (1), after “statutory instrument and” insert “, subject to
subsection (1A),”, and

(b) 30after subsection (1) insert—

(1A) A statutory instrument containing regulations under section
8M, 8N or 8U is subject to annulment in pursuance of a
resolution of the House of Commons.”

(3) In section 13A(2) of FA 1994 (customs and excise reviews and appeals:
35“relevant decisions”), after paragraph (g) insert—

(gb) any decision by HMRC that a person is liable to a penalty, or as
to the amount of the person’s liability, under section 8O of the
Tobacco Products Duty Act 1979;”.

(4) In Schedule 5 to FA 1994 (decisions subject to review and appeal) after
40paragraph 5 insert—

5A Any decision—

(a) to refuse an approval under section 8L of the Tobacco
Products Duty Act 1979 (raw tobacco: approval to carry on a
controlled activity);

(b) 45to impose a condition or restriction on, or to revoke or vary
the terms of, an approval under that section.”

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(5) The amendments made by this section come into force on such day as the
Commissioners for Her Majesty’s Revenue and Customs may by regulations
made by statutory instrument appoint.

(6) Regulations under subsection (5) may appoint different days for different
5purposes.

State aids granted through provision of tax advantages

179 Powers to obtain information about certain tax advantages

(1) The powers conferred by this section are only exercisable for the purpose of
complying (or enabling another person to comply) with relevant EU
10obligations.

(2) The Commissioners may determine that claims made for a tax advantage of a
description listed in Part 1 of Schedule 24 must include (or be accompanied by)
such information, presented in such form, as the determination may specify.

(3) For the purposes of subsection (2) “information” includes—

(a) 15information about the claimant (or the claimant’s activities),

(b) information about the subject-matter of the claim, and

(c) other information which relates to the grant of state aid through the
provision of the tax advantage in question.

(4) A determination under subsection (2)—

(a) 20may make different provision for different descriptions of tax
advantages or for different cases or circumstances, and

(b) may be revoked or amended by another determination.

(5) Subsection (6) applies where it appears to the Commissioners that a tax
advantage of a description listed in Part 2 of Schedule 24—

(a) 25has been given, or

(b) may be given in the future.

(6) The Commissioners may give the relevant person a notice requiring the
person—

(a) to supply the Commissioners with the information specified in the
30request, and

(b) if the notice so provides, to present it in the form specified in the
request.

(7) The relevant person must comply with those requirements within the period
specified in the notice.

(8) 35In subsections (6) and (7) “the relevant person”, in relation to a tax advantage
of any description, means the person mentioned in the third column of the
entry for that tax advantage in Part 2 of Schedule 24.

(9) For the purposes of subsection (6) “information” includes—

(a) information about—

(i) 40the person to whom the request is given (or their activities),

(ii) any other person who is the beneficiary of the tax advantage,

(b) information about the tax advantage (including the circumstances in
which it was obtained), and

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(c) any other information which relates to the grant of state aid through the
provision of the tax advantage in question.

(10) A determination under subsection (2) may not apply to claims made before 1
July 2016.

(11) 5A notice under subsection (6) may relate to any information required by the
Commissioners for the purpose mentioned in subsection (1) (including
information which relates to matters arising before this Act is passed).

180 Power to publish state aid information

(1) The Commissioners may publish any state aid information for the purpose of
10securing compliance with any relevant EU obligation which requires the
publication of that information.

(2) That power includes power to disclose state aid information to another person
for the purpose of securing its publication.

(3) In this section “state aid information” means information which relates to the
15grant of state aid through the provision of a tax advantage and includes (but is
not limited to) any information mentioned in section 179(3) or (9).

(4) This section applies to any state aid information (including information which
relates to a tax advantage given before the passing of this Act).

181 Information powers: supplementary

(1) 20In sections 179 and 180—

  • “the Commissioners” means the Commissioners for Her Majesty’s
    Revenue and Customs;

  • “relevant EU obligations” means—

    (a)

    obligations under the General Block Exemption Regulation that
    25relate to the grant of state aid through the provision of a tax
    advantage, or

    (b)

    any corresponding obligations under EU law that apply to the
    grant of a notified state aid through the provision of a tax
    advantage.

(2) 30The “General Block Exemption Regulation” is Commission Regulation (EU)
No 651/2014 declaring certain categories of aid to be compatible with the
internal market in application of Articles 107 and 108 of the Treaty establishing
the European Union (which relate to state aids granted by Member States).

(3) The Treasury may by regulations made by statutory instrument amend Part 1
35or Part 2 of Schedule 24 by adding, omitting or varying an entry for any
description of tax advantage.

(4) Regulations under subsection (3) may include incidental or supplemental
provision.

(5) A statutory instrument containing regulations under subsection (3) is subject
40to annulment in pursuance of a resolution of the House of Commons.

(6) The powers under sections 179 and 180 are in addition to any other powers of
the Commissioners to acquire, disclose or publish information.