DFS3050 - Law, Policy and Application: Assessments and penalties
Remission of duty in respect of spirits used for medical or scientific purposes
Law
(2) If any person contravenes or fails to comply with any condition imposed under this section his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) -ALDA s8.
(3) Subsection (4) below applies if -
(a) spirits are received and delivered in accordance with subsection (1) above,
(b) they are not used as proposed, and
(c) it is not shown to the satisfaction of the Commissioners that they can be accounted for by natural waste or other legitimate cause.
(4) In such a case the Commissioners -
(a) may assess as being excise duty due from the person concerned an amount equal to
the duty that would have been chargeable on the spirits if, at the time of delivery
from warehouse , they had been delivered for home use and otherwise than in
accordance with subsection (1) above, and
(b) may notify him or his representative accordingly -ALDA s8 as amended by the
Finance Act 1997 Schedule 2.
Policy and Application
Civil penalties can be imposed for any contravention to ALDA section 8 subsection (1) – see page DFS3020.
In cases where there is no satisfactory audit trail and the trader cannot prove to your satisfaction that the spirits used were used for an approved purpose, the duty on the spirits becomes due. You can raise an assessment for the amount of duty due on the spirits.
The assessment can be issued in addition to the civil penalty.
The power to assess was introduced with effect from 1 October 1998. No retrospection applies and therefore you can only assess for periods from that date.
From October 2001 the normal 3 year rules will apply.
Remission of duty on spirits for use in art or manufacture
Law
(2) If any person contravenes or fails to comply with any condition imposed under this section his contravention or failure to comply shall attract a penalty under Section 9 of the Finance Act 1994 (civil penalties) - ALDA s10.
( 3) Subsection (4) below applies if -
(a) spirits are received and delivered in accordance with subsection (1) above,
(b) they are not used as proposed, and
(c) it is not shown to the satisfaction of the Commissioners that they can be accounted for
by natural waste or other legitimate cause.
(4) In such a case the Commissioners -
(a) may assess as being excise duty due from the person concerned an amount equal to
the duty that would have been chargeable on the spirits if, at the time of delivery from
warehouse, they had been for home use and otherwise than in accordance with sub
section (1) above, and
(b) may notify him or his representative accordingly - ALDA s10 as amended by the
Finance Act 1994 1998 Sch 2.
Policy and Application
Civil penalties can be imposed for any contravention to ALDA section 10 subsection (1) - see DFS3040.
In cases where there is no satisfactory audit trail and the trader cannot prove to your satisfaction that the spirits used were used for an approved purpose, the duty on the spirits becomes due. You can raise an assessment for the amount of duty due on the spirits.
The assessment can be issued in addition to the civil penalty.
The power to assess was introduced with effect from 1 October 1998. No retrospection applies and therefore you can only assess for periods from that date.
From October 2001 the normal 3 year rules will apply.
