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Set off against oil profits: minor and consequential amendments |
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1 | In section 87A of TMA 1970 (interest on overdue corporation tax), in |
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subsection (6)(a), after “set off” insert “(whether under section 393A(1) or |
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2 | ICTA is amended as follows. |
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3 | In section 343 (company reconstructions without change of ownership), in |
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subsection (3), after “section 393A(1)” insert “(including a case where section |
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4 | In section 393 (losses other than terminal losses), in subsection (1), for the |
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words after “cannot” substitute “be relieved under this subsection, or (if a |
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claim is made under section 393A(1)) under section 393A(1) or 393B(3), |
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against income or profits of an earlier accounting period.” |
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5 | In section 393A (losses: set off against profits of the same, or an earlier, |
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accounting period), after subsection (2C) insert— |
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“(2D) | Section 393B makes further provision about setting off losses in cases |
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where subsection (2C) applies.” |
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6 | In section 768A (change in ownership: disallowance of carry back of trading |
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losses), in subsection (1), after “section 393A(1)” insert “or 393B(3)”. |
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7 | In section 826 (interest on tax overpaid), in subsection (7A)(b), after “set off” |
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insert “(whether under section 393A(1) or 393B(3))”. |
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8 (1) | Schedule 19B (petroleum extraction activities: exploration expenditure |
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supplement) is amended as follows. |
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(2) | In paragraph 1 (provision about the Schedule), in sub-paragraph (7)(b), after |
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“section 393A” insert “or 393B”. |
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(3) | In paragraph 17 (ring fence losses and qualifying E&A losses), in sub- |
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(a) | the words after “assumed” become sub-paragraph (a), and |
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(b) | at the end of that sub-paragraph insert “and— |
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(b) | that (where appropriate) section 393B applies in |
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relation to every such claim.” |
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9 (1) | Schedule 19C (petroleum extraction activities: ring fence expenditure |
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supplement) is amended as follows. |
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(2) | In paragraph 1 (provision about the Schedule), in sub-paragraph (6)(b), after |
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“section 393A” insert “or 393B”. |
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(3) | In paragraph 17 (ring fence losses)— |
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(a) | in sub-paragraph (2), for “assumption is” substitute “assumptions |
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(b) | in sub-paragraph (3), for “The assumption” substitute “The first |
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(c) | after that sub-paragraph insert— |
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“(3A) | The second assumption is that (where appropriate) section |
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393B applies in relation to every such claim under section |
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10 (1) | Schedule 20 to FA 2000 (tax relief for expenditure on research and |
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development) is amended as follows. |
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(2) | In paragraph 15 (entitlement to R&D tax credit)— |
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(a) | in sub-paragraph (4)(b), after “section 393A(1)(b)” insert “or |
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(b) | in sub-paragraph (5)(b), after “section 393A(1)(b)” insert “or |
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(3) | In paragraph 23 (treatment of deemed trading loss), in sub-paragraph (2), |
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after “section 393A(1)(b)” insert “or 393B(3)”. |
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Information and inspection powers |
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Powers to obtain information and documents |
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Power to obtain information and documents from taxpayer |
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1 (1) | An officer of Revenue and Customs may by notice in writing require a |
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(a) | to provide information, or |
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(b) | to produce a document, |
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| if the information or document is reasonably required by the officer for the |
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purpose of checking the taxpayer’s tax position. |
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(2) | In this Schedule, “taxpayer notice” means a notice under this paragraph. |
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Power to obtain information and documents from third party |
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2 (1) | An officer of Revenue and Customs may by notice in writing require a |
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(a) | to provide information, or |
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(b) | to produce a document, |
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| if the information or document is reasonably required by the officer for the |
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purpose of checking the tax position of another person whose identity is |
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known to the officer (“the taxpayer”). |
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(2) | A third party notice must name the taxpayer to whom it relates, unless the |
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First-tier Tribunal has approved the giving of the notice and disapplied this |
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requirement under paragraph 3. |
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(3) | In this Schedule, “third party notice” means a notice under this paragraph. |
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Approval etc of taxpayer notices and third party notices |
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3 (1) | An officer of Revenue and Customs may not give a third party notice |
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(a) | the agreement of the taxpayer, or |
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(b) | the approval of the First-tier Tribunal. |
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(2) | An officer of Revenue and Customs may ask for the approval of the First-tier |
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Tribunal to the giving of any taxpayer notice or third party notice (and for |
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the effect of obtaining such approval see paragraphs 29, 30 and 53 (appeals |
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against notices and offence)). |
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(3) | The First-tier Tribunal may not approve the giving of a taxpayer notice or |
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third party notice unless— |
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(a) | an application for approval is made by, or with the agreement of, an |
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authorised officer of Revenue and Customs, |
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(b) | the Tribunal is satisfied that, in the circumstances, the officer giving |
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the notice is justified in doing so, |
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(c) | the person to whom the notice is addressed has been told that the |
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information or documents referred to in the notice are required and |
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given a reasonable opportunity to make representations to an officer |
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(d) | the First-tier Tribunal has been given a summary of any |
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representations made by that person, and |
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(e) | in the case of a third party notice, the taxpayer has been given a |
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summary of the reasons why an officer of Revenue and Customs |
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requires the information and documents. |
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(4) | Paragraphs (c) to (e) of sub-paragraph (3) do not apply to the extent that the |
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First-tier Tribunal is satisfied that taking the action specified in those |
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paragraphs might prejudice the assessment or collection of tax. |
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(5) | Where the First-tier Tribunal approves the giving of a third party notice |
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under this paragraph, it may also disapply the requirement to name the |
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taxpayer in the notice if it is satisfied that the officer has reasonable grounds |
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for believing that naming the taxpayer might seriously prejudice the |
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assessment or collection of tax. |
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Copying third party notice to taxpayer |
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4 (1) | An officer of Revenue and Customs who gives a third party notice must give |
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a copy of the notice to the taxpayer to whom it relates, unless the First-tier |
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Tribunal has disapplied this requirement. |
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(2) | The First-tier Tribunal may not disapply that requirement unless— |
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(a) | an application for approval is made by, or with the agreement of, an |
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authorised officer of Revenue and Customs, and |
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(b) | the Tribunal is satisfied that the officer has reasonable grounds for |
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believing that giving a copy of the notice to the taxpayer might |
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prejudice the assessment or collection of tax. |
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Power to obtain information and documents about persons whose identity is not known |
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5 (1) | An authorised officer of Revenue and Customs may by notice in writing |
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(a) | to provide information, or |
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(b) | to produce a document, |
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| if the condition in sub-paragraph (2) is met. |
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(2) | That condition is that the information or document is reasonably required by |
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the officer for the purpose of checking the UK tax position of— |
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(a) | a person whose identity is not known to the officer, or |
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(b) | a class of persons whose individual identities are not known to the |
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(3) | An officer of Revenue and Customs may not give a notice under this |
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paragraph without the approval of the First-tier Tribunal. |
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(4) | The First-tier Tribunal may not give its approval for the purpose of this |
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paragraph unless it is satisfied that— |
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(a) | the notice would meet the condition in sub-paragraph (2), |
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(b) | there are reasonable grounds for believing that the person or any of |
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the class of persons to whom the notice relates may have failed or |
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may fail to comply with any provision of the Taxes Acts, VATA 1994 |
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or any other enactment relating to value added tax charged in |
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accordance with that Act, |
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(c) | any such failure is likely to have led or to lead to serious prejudice to |
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the assessment or collection of UK tax, and |
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(d) | the information or document to which the notice relates is not readily |
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available from another source. |
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(5) | In this paragraph “UK tax” means any tax other than relevant foreign tax |
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and value added tax charged in accordance with the law of another member |
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6 (1) | In this Schedule, “information notice” means a notice under paragraph 1, 2 |
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(2) | An information notice may specify or describe the information or |
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documents to be provided or produced. |
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(3) | If an information notice is given with the approval of the First-tier Tribunal, |
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it must state that it is given with that approval. |
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7 (1) | Where a person is required by an information notice to provide information |
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or produce a document, the person must do so— |
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(a) | within such period, and |
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(b) | at such time, by such means and in such form (if any), |
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| as is reasonably specified or described in the notice. |
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(2) | Where an information notice requires a person to produce a document, it |
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must be produced for inspection— |
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(a) | at a place agreed to by that person and an officer of Revenue and |
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(b) | at such place as an officer of Revenue and Customs may reasonably |
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(3) | An officer of Revenue and Customs must not specify a place that is used |
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(4) | The production of a document in compliance with an information notice is |
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not to be regarded as breaking any lien claimed on the document. |
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Producing copies of documents |
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8 (1) | Where an information notice requires a person to produce a document, the |
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person may comply with the notice by producing a copy of the document, |
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subject to any conditions or exceptions set out in regulations made by the |
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(2) | Sub-paragraph (1) does not apply where— |
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(a) | the notice requires the person to produce the original document, or |
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(b) | an officer of Revenue and Customs subsequently makes a request in |
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writing to the person for the original document. |
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(3) | Where an officer of Revenue and Customs requests a document under sub- |
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paragraph (2)(b), the person to whom the request is made must produce the |
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(a) | within such period, and |
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(b) | at such time and by such means (if any), |
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| as is reasonably requested by the officer. |
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Restrictions and special cases |
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9 | This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule. |
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Powers to inspect businesses etc |
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Power to inspect business premises etc |
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10 (1) | An officer of Revenue and Customs may enter a person’s business premises |
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(b) | business assets that are on the premises, and |
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(c) | business documents that are on the premises, |
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| if the inspection is reasonably required for the purpose of checking that |
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(2) | The powers under this paragraph do not include power to enter or inspect |
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any part of the premises that is used solely as a dwelling. |
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“business assets” means assets that an officer of Revenue and Customs |
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has reason to believe are owned, leased or used in connection with |
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the carrying on of a business by any person, excluding documents, |
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“business documents” means documents (or copies of documents)— |
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(a) | that relate to the carrying on of a business by any person, and |
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(b) | that form part of any person’s statutory records, and |
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“business premises”, in relation to a person, means premises (or any |
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part of premises) that an officer of Revenue and Customs has reason |
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to believe are (or is) used in connection with the carrying on of a |
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business by or on behalf of the person. |
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Power to inspect premises used in connection with taxable supplies etc |
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11 (1) | This paragraph applies where an officer of Revenue and Customs has reason |
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(a) | premises are used in connection with the supply of goods under |
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taxable supplies and goods to be so supplied are on those premises, |
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(b) | premises are used in connection with the acquisition of goods from |
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other member States under taxable acquisitions and goods to be so |
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acquired are on those premises, or |
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(c) | premises are used as a fiscal warehouse. |
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(2) | An officer of Revenue and Customs may enter the premises and inspect— |
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(b) | any goods that are on the premises, and |
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(c) | any documents on the premises that appear to the officer to relate to |
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(3) | The powers under this paragraph do not include power to enter or inspect |
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any part of the premises that is used solely as a dwelling. |
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(4) | Terms used both in sub-paragraph (1) and in VATA 1994 have the same |
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meaning in that sub-paragraph as they have in that Act. |
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12 (1) | An inspection under this Part of this Schedule may be carried out only— |
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(a) | at a time agreed to by the occupier of the premises, or |
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(b) | if sub-paragraph (2) is satisfied, at any reasonable time. |
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(2) | This sub-paragraph is satisfied if— |
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(a) | the occupier of the premises has been given at least 7 days’ notice of |
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the time of the inspection (whether in writing or otherwise), or |
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(b) | the inspection is carried out by, or with the agreement of, an |
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authorised officer of Revenue and Customs. |
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(3) | An officer of Revenue and Customs seeking to carry out an inspection under |
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sub-paragraph (2)(b) must provide a notice in writing as follows— |
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(a) | if the occupier of the premises is present at the time the inspection is |
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to begin, the notice must be provided to the occupier, |
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(b) | if the occupier of the premises is not present but a person who |
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appears to the officer to be in charge of the premises is present, the |
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notice must be provided to that person, and |
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(c) | in any other case, the notice must be left in a prominent place on the |
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(4) | The notice referred to in sub-paragraph (3) must state the possible |
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consequences of obstructing the officer in the exercise of the power. |
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(5) | If a notice referred to in sub-paragraph (3) is given with the approval of the |
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First-tier Tribunal (see paragraph 13), it must state that it is given with that |
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Approval of First-tier Tribunal |
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13 (1) | An officer of Revenue and Customs may ask the First-tier Tribunal to |
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approve an inspection under this Part of this Schedule. |
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(2) | The First-tier Tribunal may not approve an inspection unless— |
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(a) | an application for approval is made by, or with the agreement of, an |
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authorised officer of Revenue and Customs, and |
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(b) | the Tribunal is satisfied that, in the circumstances, the inspection is |
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Restrictions and special cases |
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14 | This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule. |
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15 | Where a document (or a copy of a document) is produced to, or inspected |
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by, an officer of Revenue and Customs, such an officer may take copies of, |
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or make extracts from, the document. |
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Power to remove documents |
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16 (1) | Where a document is produced to, or inspected by, an officer of Revenue |
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and Customs, such an officer may— |
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(a) | remove the document at a reasonable time, and |
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(b) | retain it for a reasonable period, |
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| if it appears to the officer to be necessary to do so. |
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(2) | Where a document is removed in accordance with sub-paragraph (1), the |
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person who produced the document may request— |
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(a) | a receipt for the document, and |
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(b) | if the document is reasonably required for any purpose, a copy of the |
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| and an officer of Revenue and Customs must comply with such a request |
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(3) | The removal of a document under this paragraph is not to be regarded as |
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breaking any lien claimed on the document. |
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(4) | Where a document removed under this paragraph is lost or damaged, the |
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Commissioners are liable to compensate the owner of the document for any |
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expenses reasonably incurred in replacing or repairing the document. |
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(5) | In this paragraph, references to a document include a copy of a document. |
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