Review of HM Revenue & Customs Powers, Deterrents and Safeguards
Excise Modernisation and Compliance checks
Excise compliance checks
The Review is now looking at creating a robust compliance checking framework for excise duties that is proportionate to the risks in this area of work. It was decided to consider excise as a whole because of the need for generic legislation and the significant risk of fraud. The priority is to protect legitimate trade and the revenue.
This covers excise duties on alcohol, tobacco, energy products, gambling and Air Passenger Duty.
The proposals are to:
- amend the Customs and Excise Management Act 1979 (CEMA) record keeping, information and inspection powers
- increase the time limits for assessments and claims from three to four years and allow for transitional arrangements
Excise modernisation
There was consultation in 2009 on options for simplifying excise administrative law. These are now being taken forward separately and no legislation is planned.
Consultation
Excise: Modernisation and Compliance Checks: the next stage - December 2009
Impact Assessment - December 2009
Draft Legislation - January 2010
Comments by 3 March 2010
This second consultation includes responses to the initial consultation and seeks views on:
- Modernising and aligning excise legislation on record keeping.
- Increasing the normal time limit for assessment and claims from three to four years.
- Retaining the current extended time limit of 20 years for a deliberate loss of Excise Duty or failure to notify.
- Aligning the terminology used to describe taxpayer behaviours.
- Extending existing powers to allow HM Revenue & Customs (HMRC) to inspect documents as well as goods and premises.
- Clarifying the premises which can be inspected, to cover self storage units and premises used solely as a dwelling.
- Allowing HMRC to apply for a warrant to search for and remove documents relating to goods liable to forfeiture.
- No requirement that visits be approved by an authorised officer or that prior notice is given or a notice issued at the visit.
- No formal information notice procedure or power of appeal for revenue traders.
- A new formal information notice procedure for third parties, pre-authorised by a tribunal.
- Facility for HMRC to seek tribunal approval for an inspection with a penalty due if entry refused. Fixed daily and duty related penalties to be available plus a criminal offence of obstruction.
- HMRC to pass information of excise wrongdoing to licensing authorities.
- Using an anti fraud concept for excise similar to the one used in VAT.
On modernisation, work will be done on streamlining controls around alcohol production and warehousing and this will be discussed further with industry outside the consultation.
Excise Modernisation and Compliance checks - July 2009
This initial consultation sought views on how to modernise the excise administrative processes and the framework for checking compliance with excise law.
