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4.30 pm
Sir James Molyneaux (Lagan Valley): Although I have no wish to detain the House, the Minister's mention of Northern Ireland ought to be amplified a little further. The fact that Northern Ireland is singled out for some of those irregular and sometimes rather dubious practices arises mainly not from the basic dishonesty of the Northern Ireland population generally, but from all sorts of devices and practices that have been going on for years, in what we call the smuggling country on both sides of the land frontier of the UK. The fact that Northern Ireland has the only UK land frontier within its territory causes such malpractice. The Minister will be aware of the smuggling of oil and other commodities that takes place in that band of what is sometimes called, even by natives, bandit country. I know that he and his hon. Friends have in the past been very quick to identify such exploitation and cheating of the Revenue out of its rightful moneys.
There should not be any reluctance on the part of the sovereign Government on the other side of the kingdom's land frontier to do their best to tighten up their measures and assist the Minister's Customs and Excise officers in that region, because only this week the Irish Agriculture Minister was issuing strong threats to seal the frontier on account of mad cow disease. What can be done for one purpose can surely be done for all others. With that timely observation, I shall conclude.
Mr. Heathcoat-Amory:
Although such practices occur not only in Northern Ireland, they are especially prevalent there, as the right hon. Member for Lagan Valley (Sir J. Molyneaux) acknowledged. I am afraid that it is true that, when we shut down one type of smuggling or excise abuse, the same people can exploit other loopholes. The Northern Ireland customs and excise service has generally productive discussions and interchanges with the parallel service in the Republic, where there is a common interest in preventing racketeering or excise abuse. I take it from the right hon. Gentleman's remarks that he nevertheless approves of our attempt to close a potential loophole, which might be exploited by paramilitary organisations or the criminal fraternity in general.
Question put and agreed to.
Clause read a Second time, and added to the Bill.
Mr. Heathcoat-Amory:
I beg to move, That the clause be read a Second time.
'.--(1) The Hydrocarbon Oil Duties Act 1979 shall be amended as mentioned in subsections (2) to (4) below.
(2) In section 20 (contaminated or accidentally mixed oil), after subsection (3) there shall be inserted the following subsection--
"(4) The power to make a payment to a person under subsection (2) above in relation to oils that have become accidentally mixed does not apply in relation to a mixture in respect of which he is liable to pay duty under section 20AAA below."
(3) After section 20A there shall be inserted the following sections--
"Mixing of rebated oil
20AAA.--(1) Where--
(a) a mixture which is leaded or unleaded petrol is produced in contravention of Part I of Schedule 2A to this Act, and
(b) the mixture is not produced as a result of approved mixing,
a duty of excise shall be charged on the mixture.
(2) Where--
(a) a mixture of heavy oils is produced in contravention of Part II of Schedule 2A to this Act,
(b) the mixture is not produced as a result of approved mixing, and
(c) the mixture is supplied for use as fuel for a road vehicle or an excepted vehicle,
a duty of excise shall be charged on the mixture.
(3) The person liable to pay the duty charged under subsection (1) above is the person producing the mixture.
(4) The person liable to pay the duty charged under subsection (2) above is the person supplying the mixture.
(5) The Commissioners may exempt a person from liability to pay duty charged under this section in respect of the production or supply of a mixture if they are satisfied--
(a) that the mixture has been produced or (as the case may be) supplied accidentally; and
(b) that, having regard to all the circumstances, the person should be exempted from liability to pay the duty.
(6) Part III of Schedule 2A to this Act makes provision with respect to rates and amounts of duty charged under this section.
(7) In this section--
'approved mixing' has the meaning given by section 20A(5) above; and
'excepted vehicle' means a vehicle which is an excepted vehicle under any provision of Schedule 1 to this Act.
Mixing of rebated oil: supplementary
20AAB.--(1) A person who--
(a) produces a mixture on which duty is charged under section 20AAA(1) above, or
(b) supplies a mixture on which duty is charged under section 20AAA(2) above,
must notify the Commissioners that he has done so within the period of seven days beginning with the date on which he produced or (as the case may be) supplied the mixture.
(2) A person is not required to give a notification under subsection (1) above if, before he produced or (as the case may be) supplied the mixture, he notified the Commissioners that he proposed to do so.
(3) Notification under subsection (1) or (2) above must be given in such form and in such manner, and must contain such particulars, as the Commissioners may direct.
(4) Subject to subsection (7) below, where it appears to the Commissioners--
(a) that a person has produced or supplied a mixture on which duty is charged under section 20AAA above, and
(b) that he is the person liable to pay the duty,
they may assess the amount of duty due from him to the best of their judgement and notify that amount to him or his representative.
(5) An assessment under subsection (4) above shall be treated as if it were an assessment under section 12(1) of the Finance Act 1994.
(6) The Commissioners may give a direction that a person who is, or expects to be, liable to pay duty charged under section 20AAA above--
(a) shall account for duty charged under that section by reference to such periods ('accounting periods') as may be determined by or under the direction;
(b) shall make, in relation to accounting periods, returns in such form and at such times and containing such particulars as may be so determined;
(c) shall pay duty charged under that section at such times and in such manner as may be so determined.
(7) The power to make an assessment under subsection (4) above does not apply in relation to a person who is for the time being subject to a direction under subsection (6) above.
(8) Where any person--
(a) fails to give a notification which he is required to give under subsection (1) above, or
(b) fails to comply with a direction under subsection (6) above,
his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties)."
(4) After Schedule 2 there shall be inserted the Schedule set out in Schedule (Mixing of rebated oil) to this Act.
(5) This section and Schedule (Mixing of rebated oil) to this Act shall have effect in relation to--
(a) the production on or after the appointed day of a mixture which is leaded or unleaded petrol; and
(b) the supply on or after the appointed day of a mixture of heavy oils;
and "the appointed day" here means such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.'--[Mr. Heathcoat-Amory.]
Brought up, read the First and Second time, and added to the Bill.
.--(1) A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which--
(a) has been removed (by dredging or otherwise) from water falling within subsection (2) below, and
(b) formed part of or projected from the bed of the water concerned before its removal.
(2) Water falls within this subsection if it is--
(a) a river, canal or watercourse (whether natural or artificial), or
(b) a dock or harbour (whether natural or artificial).
(3) A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which--
(a) has been removed (by dredging or otherwise) from water falling within the approaches to a harbour (whether natural or artificial),
(b) has been removed in the interests of navigation, and
(c) formed part of or projected from the bed of the water concerned before its removal.
(4) A disposal is not a taxable disposal for the purposes of this Part if it is shown to the satisfaction of the Commissioners that the disposal is of material all of which--
(a) consists of naturally occurring mineral material, and
(b) has been removed (by dredging or otherwise) from the sea in the course of commercial operations carried out to obtain substances such as sand or gravel from the seabed.'.--[Mr. Heathcoat-Amory.]
Brought up, and read the First time.
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