Finance Bill (HC Bill 114)

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(a)may only be made in the two cases specified in sub-paragraphs (2)
and (3), and

(b)may not be made in the circumstances specified in sub-paragraph
(5).

(2)5The first case is where the situation mentioned in paragraph 19(1) was
brought about carelessly or deliberately on the part of—

(a)a relevant person, or

(b)a person acting on behalf of a relevant person.

(3)The second case is where an officer of Revenue and Customs, at the time the
10officer—

(a)ceased to be entitled to give a notice of enquiry into the return, or

(b)completed an enquiry into the return,

could not have been reasonably expected, on the basis of the information
made available to the officer before that time, to be aware of the situation
15mentioned in paragraph 19(1).

(4)For this purpose information is regarded as made available to the officer of
Revenue and Customs if—

(a)it is contained in the DST return for the accounting period in question
or either of the two immediately preceding accounting periods,

(b)20it is contained in any documents produced or information provided
by the responsible member for the purposes of an enquiry into any
such return, or

(c)it is information the existence of which, and the relevance of which
as regards the situation mentioned in paragraph 19(1)—

(i)25could reasonably be expected to be inferred by the officer of
Revenue and Customs from information falling within
paragraph (a) or (b), or

(ii)are notified in writing to an officer of Revenue and Customs
by the responsible member or another person acting on the
30responsible member’s behalf.

(5)No discovery assessment may be made if—

(a)the situation mentioned in paragraph 19(1) is attributable to a
mistake in the return as to the basis on which the tax liability ought
to have been calculated, and

(b)35the return was in fact made on the basis or in accordance with the
practice generally prevailing at the time it was made.

Time limits for discovery assessments

21(1)The general rule is that no discovery assessment may be made more than 4
years after the end of the accounting period to which it relates.

(2)40An assessment in a case involving a loss of tax brought about carelessly by a
relevant person (or a person acting on their behalf) may be made at any time
not more than 6 years after the end of the accounting period to which it
relates.

(3)An assessment in a case involving a loss of tax—

(a)45brought about deliberately by a relevant person (or a person acting
on their behalf), or

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(b)attributable to a failure by the responsible member to comply with an
obligation under section 53,

may be made at any time not more than 20 years after the end of the
accounting period to which it relates.

5Assessment procedure etc

22(1)Where notice of a discovery assessment is issued, the notice must be served
on the responsible member.

(2)The notice must state—

(a)the tax due,

(b)10the date on which the notice is issued, and

(c)the time within which any appeal against the assessment must be
made.

(3)After notice of the assessment has been served under this paragraph, the
assessment may not be altered except as provided for by or under this Part
15of this Act.

(4)Where an officer of Revenue and Customs has—

(a)decided to make an assessment to tax, and

(b)taken all other decisions needed for arriving at the amount of the
assessment,

20the officer may entrust to some other officer of Revenue and Customs the
responsibility for completing the assessing procedure, whether by means
involving the use of a computer or otherwise, including responsibility for
serving notice of the assessment.

Liability to amounts charged by way of discovery assessment

23(1)25This paragraph applies where—

(a)notice of a discovery assessment has been issued under paragraph
22, and

(b)no appeal has been brought against the assessment under paragraph
33(1)(c).

(2)30The responsible member is liable to the tax due, subject as follows.

(3)The responsible member may make a request to an officer of Revenue and
Customs for one or more other relevant persons to be liable to the tax due (or
any part of it).

(4)The request must be made within 30 days of the date of issue of the notice of
35assessment.

(5)Within 30 days of receiving the request, the officer must—

(a)either agree to the request or refuse it,

(b)notify the responsible member of the decision, and

(c)if the officer agrees to the request, give effect to it by making all
40necessary adjustments.

(6)An officer may not agree to the request unless satisfied it is reasonable in all
the circumstances.

(7)A request or notification under this paragraph must be in writing.

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Part 7 Relief in case of overpaid tax

Claim for relief for overpaid tax

24(1)This paragraph applies where, in relation to a group, an amount has been
5paid by way of tax for an accounting period which was not tax due.

(2)The responsible member may make a claim to the Commissioners for
repayment of the amount.

(3)The Commissioners must give effect to such a claim; but this is subject to—

(a)paragraph 26 (cases where no liability to give effect to claim), and

(b)10paragraph 27 (power to enquire into claims).

(4)Except as provided for by or under this Part of this Act, the Commissioners
are not liable to repay any amount paid by way of tax by reason of the fact it
was not tax due.

(5)This paragraph is to be read with paragraph 25.

15Making a claim

25(1)A claim under paragraph 24 may not be made—

(a)if the amount paid is excessive by reason of a mistake in a DST return
or returns, more than 4 years after the end of the accounting period
to which the return (or, if more than one, the first return) relates, and

(b)20otherwise, more than 4 years after the end of the accounting period
in respect of which the amount was paid.

(2)A claim must—

(a)be in the specified form, and

(b)contain specified information.

(3)25A claim may not be made by being included in a DST return.

(4)In this paragraph “specified” means specified in a notice published by
HMRC.

Cases in which Commissioners not liable to give effect to claim

26(1)If, or to the extent that, a claim under paragraph 24 falls within any of Cases
30A to D, the Commissioners are not liable to give effect to the claim.

(2)Case A is where, in relation to the group, there is unpaid DST liability for the
accounting period.

(3)Case B is where the responsible member is or will be able to seek relief by
taking other steps under this Part of this Act.

(4)35Case C is where the responsible member—

(a)could have sought relief by taking such steps within a period that has
now expired, and

(b)knew, or ought reasonably to have known, before the end of that
period that such relief was available.

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(5)Case D is where—

(a)the amount paid is excessive by reason of a mistake in calculating the
amount of tax payable by the group for the accounting period, and

(b)the amount was calculated in accordance with the practice generally
5prevailing at the time.

(6)In this paragraph “DST liability” has the same meaning as in section 65.

Power to enquire into claims

27(1)An officer of Revenue and Customs may enquire into a claim under
paragraph 24 if the officer gives notice to the responsible member of the
10officer’s intention to do within the time allowed.

(2)The time allowed is the period ending with the quarter day next following
the first anniversary of the day on which the claim was made.

The quarter days are the 31 January, 30 April, 31 July and 31 October.

(3)A claim enquired into under sub-paragraph (1) may not be the subject of a
15further notice under that sub-paragraph.

Completion of enquiry into claim etc

28(1)An enquiry under paragraph 27 is completed when the officer by notice (a
“closure notice”) informs the responsible member that the enquiry is
complete and states the conclusions reached in the enquiry.

(2)20A closure notice must either—

(a)state that in the opinion of an officer of Revenue and Customs no
amendment of the claim is required, or

(b)make the amendments of the claim required to give effect to the
conclusions stated in the notice.

(3)25A closure notice takes effect when it is issued.

(4)The officer must give effect to any amendments made by the closure notice
by making such adjustments as may be necessary whether—

(a)by way of assessment, or

(b)by discharge or repayment of tax.

(5)30The adjustments must be made within 30 days of the date of issue of the
closure notice.

(6)Paragraph 15 (direction to complete enquiry) applies in relation to an
enquiry under paragraph 27 as it applies in relation to an enquiry under
paragraph 6.

35Assessment for excessive repayment etc

29(1)This paragraph applies where—

(a)an amount has been paid by way of a repayment of tax, and

(b)the amount paid exceeded the amount which the Commissioners
were liable at that time to repay.

(2)40The Commissioners may—

(a)to the best of their judgment, assess the amount of the excess, and

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(b)notify the amount to the responsible member.

Supplementary assessments

30(1)This paragraph applies where—

(a)an assessment has been notified under paragraph 29, and

(b)5it appears to the Commissioners that the amount which ought to
have been assessed as due exceeds the amount that has already been
assessed.

(2)The Commissioners may—

(a)on or before the last day on which the assessment under paragraph
1029 could have been made, make a supplementary assessment of the
amount of tax due, and

(b)notify the amount to the responsible member.

Further provision about assessments under paragraph 29 and 30

31(1)An amount assessed and notified under paragraph 29 or 30 counts as a
15liability to digital services tax for the purposes of this Part of this Act.

(2)But sub-paragraph (1) does not have effect if, or to the extent that, the
assessment has been withdrawn or reduced.

Time limits for assessments

32An assessment under paragraph 29 or 30 may not be made more than 4 years
20after the end of the accounting period in which evidence of facts sufficient in
the opinion of the Commissioners to justify making the assessment comes to
their knowledge.

Part 8 Appeals against HMRC decisions on tax

25Right of appeal

33(1)An appeal may be brought against—

(a)an amendment of a DST return under paragraph 8 (amendment
during enquiry to prevent loss of tax);

(b)an amendment made by a closure notice under paragraph 14;

(c)30a discovery assessment (under paragraph 19);

(d)an amendment made by a closure notice under paragraph 28;

(e)an assessment made under paragraph 29 or 30.

(2)Any such appeal is to be brought by the responsible member (“the
appellant”).

(3)35If an appeal under sub-paragraph (1)(a) against an amendment of a self-
assessment is made while an enquiry into the return is in progress none of
the steps mentioned in paragraph 36(2)(a) to (c) may be taken in relation to
the appeal until the enquiry is completed.

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Notice of appeal

34(1)Notice of appeal under paragraph 33 must be given to HMRC

(a)in writing,

(b)within 30 days after the specified date.

(2)5In sub-paragraph (1) “specified date” means—

(a)in relation to an appeal under paragraph 33(1)(a), the date on which
the notice of amendment was issued;

(b)in relation to an appeal under paragraph 33(1)(b) or (d), the date on
which the closure notice was issued;

(c)10in relation to an appeal under paragraph 33(1)(c) or (e), the date on
which the notice of assessment was issued.

(3)The notice of appeal must specify the grounds of appeal.

Late notice of appeal

35(1)This paragraph applies in a case where—

(a)15notice of appeal may be given to HMRC under this Schedule, but

(b)no notice is given before the relevant time limit.

(2)Notice may be given after the relevant time limit if—

(a)HMRC agree, or

(b)where HMRC do not agree, the tribunal gives permission.

(3)20HMRC must agree to notice being given after the relevant time limit if the
appellant has requested in writing that HMRC do so and HMRC are
satisfied—

(a)that there was a reasonable excuse for not giving the notice before the
relevant time limit, and

(b)25that the request has been made without unreasonable delay.

(4)If a request of the kind mentioned in sub-paragraph (3) is made, HMRC
must notify the appellant whether or not HMRC agree to the request.

(5)In this paragraph “relevant time limit”, in relation to notice of appeal, means
the time before which the notice must be given (disregarding this
30paragraph).

Steps that may be taken following notice of appeal

36(1)This paragraph applies if notice of appeal has been given to HMRC.

(2)In such a case—

(a)the appellant may notify HMRC that the appellant requires HMRC
35to review the matter in question (see paragraph 37),

(b)HMRC may notify the appellant of an offer to review the matter in
question (see paragraph 38), or

(c)the appellant may notify the appeal to the tribunal.

(3)This paragraph does not prevent the matter in question from being dealt
40with in accordance with paragraph 44(1) and (2) (settling of appeals by
agreement).

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Right of appellant to require review

37(1)If the appellant notifies HMRC that it requires them to review the matter in
question, HMRC must—

(a)notify the appellant of HMRC’s view of the matter in question within
5the relevant period, and

(b)review the matter in question in accordance with paragraph 39.

(2) Sub-paragraph (1) does not apply if—

(a)the appellant has already given a notification under this paragraph
in relation to the matter in question,

(b)10HMRC have given a notification under paragraph 40 in relation to
the matter in question, or

(c)the appellant has notified the appeal to the tribunal.

(3)In this paragraph “the relevant period” means—

(a)the period of 30 days beginning with the day on which HMRC
15receive the notification from the appellant, or

(b)such longer period as is reasonable.

Offer of review by HMRC

38(1)Sub-paragraphs (2) to (5) apply if HMRC notify the appellant of an offer to
review the matter in question.

(2)20The notification must include a statement of HMRC’s view of the matter in
question.

(3)If the appellant notifies HMRC within the acceptance period that it accepts
the offer, HMRC must review the matter in question in accordance with
paragraph 39.

(4)25If the appellant does not accept the offer in accordance with sub-paragraph
(3)—

(a)HMRC’s view of the matter in question is treated as if it were
contained in a settlement agreement (see paragraph 44(1)), but

(b)paragraph 44(3) (right to withdraw from agreement) does not apply
30in relation to that notional agreement.

(5)Sub-paragraph (4) does not apply to the matter in question if, or to the extent
that, the appellant notifies the appeal to the tribunal under paragraph 42.

(6)HMRC may not take the action mentioned in sub-paragraph (1) at any time
if before that time—

(a)35HMRC have given a notification under this paragraph in relation to
the matter in question,

(b)the appellant has given a notification under paragraph 37 in relation
to the matter in question, or

(c)the appellant has notified the appeal to the tribunal.

(7)40In this paragraph “acceptance period” means the period of 30 days
beginning with the date of the document by which HMRC notify the
appellant of the offer to review the matter in question.

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Nature of review

39(1)This paragraph applies if HMRC are required by paragraph 37 or 38 to
review the matter in question.

(2)The nature and extent of the review are to be such as appear appropriate to
5HMRC in the circumstances.

(3)For the purpose of sub-paragraph (2), HMRC must, in particular, have
regard to steps taken before the beginning of the review—

(a)by HMRC in deciding the matter in question, and

(b)by any person in seeking to resolve disagreement about the matter in
10question.

(4)The review must take account of any representations made by the appellant
at a stage which gives HMRC a reasonable opportunity to consider them.

(5)The review may conclude that HMRC’s view of the matter in question is to
be—

(a)15upheld,

(b)varied, or

(c)cancelled.

(6)HMRC must notify the appellant of the conclusions of the review and their
reasoning within—

(a)20the period of 45 days beginning with the relevant day, or

(b)such other period as may be agreed.

(7)In sub-paragraph (6) “relevant day” means—

(a)in a case where the appellant required the review, the day when
HMRC notified the appellant of HMRC’s view of the matter in
25question;

(b)in a case where HMRC offered the review, the day when HMRC
received notification of the appellant’s acceptance of the offer.

(8)If HMRC do not give notice of the conclusions of the review within the
period specified in sub-paragraph (6), the review is treated as having
30concluded that HMRC’s view of the matter in question is upheld.

(9)If sub-paragraph (8) applies, HMRC must notify the appellant of the
conclusions which the review is treated as having reached.

Effect of conclusions of review

40(1)If HMRC give notice of the conclusions of a review (see paragraph 39)—

(a)35the conclusions are to be treated as if they were contained in a
settlement agreement (see paragraph 44(1)), but

(b)paragraph 44(3) (withdrawal from agreement) does not apply in
relation to that notional agreement.

(2)Sub-paragraph (1) does not apply to the matter in question if, or to the extent
40that, the appellant notifies the appeal to the tribunal (see paragraphs 41 and
42).

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Notifying appeal to tribunal after appellant has required review

41(1)Where HMRC have notified an appellant under paragraph 37(1)(a) of their
view of a matter to which an appeal under paragraph 33 relates, the
appellant—

(a)5may not notify the appeal to the tribunal before the beginning of the
post-review period;

(b)may notify the appeal to the tribunal after the end of that period only
if the tribunal gives permission.

(2)Except where sub-paragraph (3) applies, the post-review period is the
10period of 30 days beginning with the date of the document in which HMRC
give notice of the conclusions of the review in accordance with paragraph
39(6).

(3)If the period specified in paragraph 39(6) ends without HMRC having given
notice of the conclusions of the review, the post-review period is the period
15that—

(a)begins with the day following the last day of the period specified in
paragraph 39(6), and

(b)ends 30 days after the date of the document in which HMRC give
notice of the conclusions of the review in accordance with paragraph
2039(9).

Notifying appeal to tribunal after HMRC have offered review

42(1)Where HMRC have offered to review the matter to which a notice of an
appeal under paragraph 33 relates, the right of the appellant at any time to
notify the appeal to the tribunal depends on whether or not the appellant has
25accepted the offer at that time.

(2)If the appellant has accepted the offer, the appellant—

(a)may not notify the appeal to the tribunal before the beginning of the
post-review period;

(b)may notify the appeal to the tribunal after the end of that period only
30if the tribunal gives permission.

(3)If the appellant has not accepted the offer, the appellant—

(a)may notify the appeal to the tribunal within the acceptance period;

(b)may notify the appeal to the tribunal after the end of that period only
if the tribunal gives permission.

(4)35In this paragraph—

(a)“acceptance period” has the same meaning as in paragraph 38;

(b)“post-review period” has the same meaning as in paragraph 41.

Interpretation of paragraphs 36 to 42

43(1)In paragraphs 36 to 42

(a)40“matter in question” means the matter to which an appeal relates;

(b) a reference to a notification is to a notification in writing.

(2)In paragraphs 36 to 42, a reference to the appellant includes a person acting
on behalf of the appellant except in relation to—

(a)notification of HMRC’s view under paragraph 37(1)(a);

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(b)notification by HMRC of an offer of review (and of their view of the
matter) under paragraph 38;

(c)notification of the conclusions of a review under paragraph 39(6) or
(9).

(3)5But if a notification falling within any of paragraphs (a) to (c) of sub-
paragraph (2) is given to the appellant, a copy of the notification may also be
given to a person acting on behalf of the appellant.

Settling of appeals by agreement

44(1)In relation to an appeal of which notice has been given under paragraph 34,
10“settlement agreement” means an agreement in writing between the
appellant and an officer of Revenue and Customs that is—

(a)entered into before the appeal is determined, and

(b)to the effect that the decision appealed against should be upheld
without variation, varied in a particular manner or discharged or
15cancelled.

(2)Where a settlement agreement is entered into in relation to an appeal, the
consequences are to be the same (for all purposes) as if, at the time the
agreement was entered into, the tribunal had decided the appeal and had
upheld the decision without variation, varied it in that manner or
20discharged or cancelled it, as the case may be.

(3)Sub-paragraph (2) does not apply if, within 30 days beginning with the date
on which the settlement agreement was entered into, the appellant gives
notice in writing to HMRC that it wishes to withdraw from the agreement.

(4)Sub-paragraph (5) applies where notice of an appeal has been given under
25paragraph 34 and—

(a)the appellant notifies HMRC, orally or in writing, that the appellant
does not wish to proceed with the appeal, and

(b)HMRC do not, within 30 days after that notification, give the
appellant notice in writing indicating that they are unwilling that the
30appeal should be withdrawn.

(5)Sub-paragraphs (1) to (3) have effect as if, at the date of the appellant’s
notification, the appellant and an officer of Revenue and Customs had
agreed that the decision under appeal should be upheld without variation.

Appeal does not postpone recovery of tax

45(1)35Where there is an appeal under paragraph 33, the tax in question remains
due and payable as if there had been no appeal.

(2)That is subject to paragraphs 46 and 47.

Application for payment of tax to be postponed

46(1)If the appellant has grounds for believing that the amendment or assessment
40overcharges a relevant person to tax, the appellant may—

(a)first apply by notice in writing to HMRC within 30 days after the
specified date for a determination by them of the amount of tax the
payment of which should be postponed pending the determination
of the appeal, and