To ensure that businesses comply with the terms of refund
agreements they have reached with the Commissioners, Finance Act
1997 Schedule 5, paragraphs 14 to 19 “Recovery of excess
payments by the Commissioners” allows HMRC to assess those
businesses that have failed to reimburse (repay) their consumers in
the manner agreed.
Under paragraph 14(2) “Where any person is liable to
pay any amount to the Commissioners in pursuance of an obligation
imposed by virtue of paragraph 3(4)(a) above, the Commissioners
may, to the best of their judgement, assess the amounts due from
that person and notify it to him.”
Paragraph 15 allows an assessment to be issued to recover any
amount paid by way of interest, and paragraph 17 allows for
interest to be charged on the whole amount of any assessment
issued.
In addition to the powers to assess for money, the Finance
Act 1997, Schedule 5, paragraph 4(3) also allows us to issue a
civil penalty. A penalty may be issued where there is a
contravention or failure to comply with any obligation imposed by
regulations made by virtue of paragraph 3(4).
