Finance Bill

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Finance Bill

Finance Bill
Part 6 — Investigation, administration etc
57

(a)
for “investigations conducted by officers of Customs and Excise of
offences which relate to assigned matters, as defined in section 1 of the
Customs and Excise Management Act 1979,” substitute “investigations
conducted by officers of Revenue and Customs”, and
(b)
for “persons detained by officers of Customs and Excise;” substitute
5
“persons detained by officers of Revenue and Customs;”.
(3)
In the opening words of paragraph (b) of that subsection, for “investigations of
offences conducted by officers of Customs and Excise” substitute
“investigations of offences conducted by officers of Revenue and Customs”.
(4)
In sub-paragraph (i) of that paragraph, for “section” substitute “sections”.
10
(5)
In the section 14A deemed to be inserted by that sub-paragraph—
(a)
for “and which relates to an assigned matter, as defined in section 1 of
the Customs and Excise Management Act 1979,” substitute “and which
relates to a matter in relation to which Her Majesty’s Revenue and
Customs have functions,” and
15
(b)
in the heading, for “Customs and Excise” substitute “Revenue and
Customs”.
(6)
After that section insert—
“14B
Revenue and Customs: restriction on other powers to apply for
production of documents
20
(1)
An officer of Revenue and Customs may make an application for the
delivery of, or access to, documents under a provision specified in
subsection (3) only if the condition in subsection (2) is satisfied.
(2)
The condition is that the officer thinks that an application under
Schedule 1 would not succeed because the material required does not
25
consist of or include special procedure material.
(3)
The provisions are—
(a)
section 20BA of, and Schedule 1AA to, the Taxes Management
Act 1970 (serious tax fraud);
(b)
paragraph 11 of Schedule 11 to the Value Added Tax Act 1994
30
(VAT);
(c)
paragraph 4A of Schedule 7 to the Finance Act 1994 (insurance
premium tax);
(d)
paragraph 7 of Schedule 5 to the Finance Act 1996 (landfill tax);
(e)
paragraph 131 of Schedule 6 to the Finance Act 2000 (climate
35
change levy);
(f)
paragraph 8 of Schedule 7 to the Finance Act 2001 (aggregates
levy);
(g)
Part 6 of Schedule 13 to the Finance Act 2003 (stamp duty land
tax).”
40
(7)
In paragraph (c) of subsection (2)—
(a)
for “customs detention” substitute “Revenue and Customs detention”,
and
(b)
for “an officer of Customs and Excise” substitute “an officer of Revenue
and Customs”.
45

Finance Bill
Part 6 — Investigation, administration etc
58

(8)
After that paragraph (c) insert—
“(d)
that where an officer of Revenue and Customs searches
premises in reliance on a warrant under section 8 of, or
paragraph 12 of Schedule 1 to, this Act (as applied by an order
under this subsection) the officer shall have the power to search
5
persons found on the premises—
(i)
in such cases and circumstances as are specified in the
order, and
(ii)
subject to any conditions specified in the order; and
(e)
that powers and functions conferred by a provision of this Act
10
(as applied by an order under this subsection) may be exercised
only by officers of Revenue and Customs acting with the
authority (which may be general or specific) of the
Commissioners for Her Majesty’s Revenue and Customs.”
(9)
After that subsection insert—
15
“(2A)
A certificate of the Commissioners that an officer of Revenue and
Customs had authority under subsection (2)(e) to exercise a power or
function conferred by a provision of this Act shall be conclusive
evidence of that fact.”
(10)
For subsection (3) substitute—
20
“(3)
An order under subsection (2)—
(a)
may make provision that applies generally or only in specified
cases or circumstances,
(b)
may make different provision for different cases or
circumstances,
25
(c)
may, in modifying a provision, in particular impose conditions
on the exercise of a function, and
(d)
shall not be taken to limit a power under section 164 of the
Customs and Excise Management Act 1979.”
(11)
The heading of section 114 accordingly becomes “Application of Act to
30
Revenue and Customs”.
82
Northern Ireland criminal investigations
(1)
Article 85 of the Police and Criminal Evidence (Northern Ireland) Order 1989
(S.I. 1989/1341 (N.I. 12)) (application of Order to customs and excise) is
amended as follows.
35
(2)
In sub-paragraph (a) of paragraph (1)—
(a)
for “investigations conducted by officers of Customs and Excise of
offences which relate to assigned matters, as defined in section 1 of the
Customs and Excise Management Act 1979,” substitute “investigations
conducted by officers of Revenue and Customs”, and
40
(b)
for “persons detained by officers of Customs and Excise;” substitute
“persons detained by officers of Revenue and Customs;”.
(3)
In the opening words of sub-paragraph (b) of that paragraph, for
“investigations of offences conducted by officers of Customs and Excise”
substitute “investigations of offences conducted by officers of Revenue and
45
Customs”.

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(4)
In paragraph (i) of that sub-paragraph, for “Article” substitute “Articles”.
(5)
In the Article 16A deemed to be inserted by that paragraph—
(a)
for “and which relates to an assigned matter, as defined in section 1 of
the Customs and Excise Management Act 1979,” substitute “and which
relates to a matter in relation to which Her Majesty’s Revenue and
5
Customs have functions,” and
(b)
in the heading, for “Customs and Excise” substitute “Revenue and
Customs”.
(6)
After that Article insert—
“16B
Revenue and Customs: restriction on other powers to apply for
10
production of documents
(1)
An officer of Revenue and Customs may make an application for the
delivery of, or access to, documents under a provision specified in
paragraph (3) only if the condition in paragraph (2) is satisfied.
(2)
The condition is that the officer thinks that an application under
15
Schedule 1 would not succeed because the material required does not
consist of or include special procedure material.
(3)
The provisions are—
(a)
section 20BA of, and Schedule 1AA to, the Taxes Management
Act 1970 (serious tax fraud);
20
(b)
paragraph 11 of Schedule 11 to the Value Added Tax Act 1994
(VAT);
(c)
paragraph 4A of Schedule 7 to the Finance Act 1994 (insurance
premium tax);
(d)
paragraph 7 of Schedule 5 to the Finance Act 1996 (landfill tax);
25
(e)
paragraph 131 of Schedule 6 to the Finance Act 2000 (climate
change levy);
(f)
paragraph 8 of Schedule 7 to the Finance Act 2001 (aggregates
levy);
(g)
Part 6 of Schedule 13 to the Finance Act 2003 (stamp duty land
30
tax).”
(7)
After sub-paragraph (b) of paragraph (1) insert—
“(c)
that where an officer of Revenue and Customs searches
premises in reliance on a warrant under Article 10 of, or
paragraph 9 of Schedule 1 to, this Order (as applied by an order
35
under this paragraph) the officer shall have the power to search
persons found on the premises—
(i)
in such cases and circumstances as are specified in the
order, and
(ii)
subject to any conditions specified in the order; and
40
(d)
that powers and functions conferred by a provision of this
Order (as applied by an order under this paragraph) may be
exercised only by officers of Revenue and Customs acting with
the authority (which may be general or specific) of the
Commissioners for Her Majesty’s Revenue and Customs.”
45

Finance Bill
Part 6 — Investigation, administration etc
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(8)
After that paragraph insert—
“(1A)
A certificate of the Commissioners that an officer of Revenue and
Customs had authority under paragraph (1)(d) to exercise a power or
function conferred by a provision of this Order shall be conclusive
evidence of that fact.”
5
(9)
For paragraph (2) substitute—
“(2)
An order under paragraph (1)—
(a)
may, in modifying a provision, in particular impose conditions
on the exercise of a function, and
(b)
shall not be taken to limit a power under section 164 of the
10
Customs and Excise Management Act 1979.”
(10)
The heading of Article 85 accordingly becomes “Application of Order to
Revenue and Customs”.
83
Sections 81 and 82: supplementary
(1)
In Schedule 2 to CRCA 2005 (restrictions on the exercise of functions), omit—
15
(a)
paragraph 7 (Police and Criminal Evidence Act 1984 (c. 60), and
(b)
paragraph 9 (Police and Criminal Evidence (Northern Ireland) Order
1989 (S.I. 1989/1341 (N.I. 12))).
(2)
Nothing in section 6 or 7 of CRCA 2005 (initial functions) restricts the functions
in connection with which officers of Revenue and Customs may exercise a
20
power under—
(a)
the Police and Criminal Evidence Act 1984 by virtue of section 114 of
that Act (as amended by section 81 above), or
(b)
the Police and Criminal Evidence (Northern Ireland) Order 1989 by
virtue of Article 85 of that Order (as amended by section 82 above).
25
(3)
But neither an order under section 114 of the Police and Criminal Evidence Act
1984 nor an order under Article 85 of the Police and Criminal Evidence
(Northern Ireland) Order 1989 has effect in relation to a matter specified in
section 54(4)(b) or (f) of, or in paragraphs 3, 7, 10, 13 to 15, 19 or 24 to 29 of
Schedule 1 to, CRCA 2005 (former Inland Revenue matters).
30
(4)
Schedule 22 contains amendments and repeals consequential on extension of
police powers to Revenue and Customs.
(5)
Sections 81 and 82 and this section come into force in accordance with
provision made by the Treasury by order.
(6)
The power to make an order under subsection (5) is exercisable by statutory
35
instrument.
84
Criminal investigations: Scotland
Schedule 23 contains provision for Scotland about the investigation of offences
by Her Majesty’s Revenue and Customs.
85
Search warrants
40
In section 8 of the Police and Criminal Evidence Act 1984, after subsection (6)

Finance Bill
Part 6 — Investigation, administration etc
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insert—
“(7)
Section 4 of the Summary Jurisdiction (Process) Act 1881 (execution of
process of English courts in Scotland) shall apply to a warrant issued on
the application of an officer of Revenue and Customs under this section
by virtue of section 114 below.”
5
86
Cross-border exercise of powers
(1)
This section relates to the Criminal Justice and Public Order Act 1994 (c. 33).
(2)
Sections 136 to 139 (execution of warrants and powers of arrest and search)
shall apply to an officer of Revenue and Customs as they apply to a constable;
and for that purpose—
10
(a)
a reference to a constable (including a reference to a constable of a
police force in England and Wales, a constable of a police force in
Scotland or a constable of a police force in Northern Ireland) shall be
treated as a reference to an officer of Revenue and Customs, and
(b)
a reference to a police station, or a designated police station, includes a
15
reference to an office of Revenue and Customs or (in England and
Wales and Northern Ireland) a designated office of Revenue and
Customs.
(3)
In the application of section 138 to an officer of Revenue and Customs—
(a)
in subsection (2)—
20
(i)
the reference to subsections (2) to (8) of section 14 of the
Criminal Procedure (Scotland) Act 1995 (c. 46) (“the 1995
Procedure Act”) shall be treated as a reference to subsections (2)
to (7) of section 24 of the Criminal Law (Consolidation)
(Scotland) Act 1995 (c. 39) (“the 1995 Consolidation Act”), and
25
(ii)
the reference to subsections (1), (2) and (4) to (6) of section 15 of
the 1995 Procedure Act shall be treated as a reference to
subsections (1) to (4) of section 25 of the 1995 Consolidation Act,
and
(b)
in subsection (6)—
30
(i)
the references to section 14 of the 1995 Procedure Act shall be
treated as references to section 24 of the 1995 Consolidation Act,
(ii)
the references to section 15 of the 1995 Procedure Act shall be
treated as references to section 25 of the 1995 Consolidation Act,
(iii)
in paragraph (a), sub-paragraph (ii) shall not apply, and
35
(iv)
paragraph (b) shall not apply.
(4)
An officer of Revenue and Customs may exercise a power under sections 136
to 139 only in the exercise of a function relating to tax (including duties and tax
credits).
(5)
In subsection (2)—
40
“office of Revenue and Customs” means premises wholly or partly
occupied by Her Majesty’s Revenue and Customs, and
“designated office of Revenue and Customs” has the meaning given by an
order under section 114 of the Police and Criminal Evidence Act 1984
(c. 60) (power to extend provisions to HMRC) or, in Northern Ireland,
45
by an order under Article 85 of the Police and Criminal Evidence
(Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12)) (power to
extend Order to HMRC).

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(6)
In section 136, after subsection (8) insert—
“(9)
Powers under this section and sections 137 to 139 may be exercised by
an officer of Revenue and Customs in accordance with section 86 of the
Finance Act 2007.”
Filing dates
5
87
Personal tax returns
(1)
Section 8 of TMA 1970 (personal tax return) is amended as follows.
(2)
In subsection (1)(a), omit “, on or before the day mentioned in subsection (1A)
below”.
(3)
Omit subsection (1A).
10
(4)
After subsection (1C) insert—
“(1D)
A return under this section for a year of assessment (Year 1) must be
delivered—
(a)
in the case of a non-electronic return, on or before 31st October
in Year 2, and
15
(b)
in the case of an electronic return, on or before 31st January in
Year 2.
(1E)
But subsection (1D) is subject to the following two exceptions.
(1F)
Exception 1 is that if a notice in respect of Year 1 is given after 31st July
in Year 2 (but on or before 31st October), a return must be delivered—
20
(a)
during the period of 3 months beginning with the date of the
notice (for a non-electronic return), or
(b)
on or before 31st January (for an electronic return).
(1G)
Exception 2 is that if a notice in respect of Year 1 is given after 31st
October in Year 2, a return (whether electronic or not) must be
25
delivered during the period of 3 months beginning with the date of the
notice.
(1H)
The Commissioners—
(a)
shall prescribe what constitutes an electronic return, and
(b)
may make different provision for different cases or
30
circumstances.”
88
Trustee’s tax return
(1)
Section 8A of TMA 1970 (trustee’s tax return) is amended as follows.
(2)
In subsection (1)(a), omit “, on or before the day mentioned in subsection (1A)
below”.
35
(3)
Omit subsection (1A).
(4)
After subsection (1AA) insert—
“(1B)
A return under this section for a year of assessment (Year 1) must be
delivered—

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(a)
in the case of a non-electronic return, on or before 31st October
in Year 2, and
(b)
in the case of an electronic return, on or before 31st January in
Year 2.
(1C)
But subsection (1B) is subject to the following two exceptions.
5
(1D)
Exception 1 is that if a notice in respect of Year 1 is given after 31st July
in Year 2 (but on or before 31st October), a return must be delivered—
(a)
during the period of 3 months beginning with the date of the
notice (for a non-electronic return), or
(b)
on or before 31st January (for an electronic return).
10
(1E)
Exception 2 is that if a notice in respect of Year 1 is given after 31st
October in Year 2, a return (whether electronic or not) must be
delivered during the period of 3 months beginning with the date of the
notice.
(1F)
The Commissioners—
15
(a)
shall prescribe what constitutes an electronic return, and
(b)
may make different provision for different cases or
circumstances.”
89
Partnership tax returns
(1)
In section 12AA of TMA 1970, for subsection (4) (partnership return: filing
20
date) substitute—
“(4)
In the case of a partnership which includes one or more individuals, a
notice under subsection (2) or (3) above may specify different days
depending on whether a return in respect of a year of assessment (Year
1) is electronic or non-electronic.
25
(4A)
The day specified for a non-electronic return must not be earlier than
31st October of Year 2.
(4B)
The day specified for an electronic return must not be earlier than 31st
January of Year 2.
(4C)
But subsections (4A) and (4B) are subject to the following two
30
exceptions.
(4D)
Exception 1 is that if the notice is given after 31st July in Year 2 (but on
or before 31st October)—
(a)
the day specified for a non-electronic return must be after the
end of the period of three months beginning with the date of the
35
notice, and
(b)
the day specified for an electronic return must not be earlier
than 31st January.
(4E)
Exception 2 is that if the notice is given after 31st October in Year 2, the
day specified for a return (whether or not electronic) must be after the
40
end of the period of three months beginning with the date of the
notice.”
(2)
For subsection (5) of that section (partnership return where a company is a