Finance Act 2001

Section 28.

SCHEDULE 6U.K. AGGREGATES LEVY: EVASION, MISDECLARATION AND NEGLECT

Part 1U.K. CRIMINAL OFFENCES

EvasionU.K.

1(1)A person is guilty of an offence if he is knowingly concerned in, or in the taking of steps with a view to—

(a)the fraudulent evasion by that person of any aggregates levy with which he is charged; or

(b)the fraudulent evasion by any other person of any aggregates levy with which that other person is charged.

(2)The references in sub-paragraph (1) above to the evasion of aggregates levy include references to obtaining, in circumstances where there is no entitlement to it, either a tax credit or a repayment of aggregates levy.

(3)A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4) below)—

(a)on summary conviction, to a penalty of [F1the statutory maximum] [F1£20,000] or to imprisonment for a term not exceeding six months, or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4)In the case of any offence under this paragraph, where [F2the statutory maximum] [F2the amount of £5,000 mentioned in paragraph 1(3)(a)] is less than three times the sum of the amounts of aggregates levy which are shown to be amounts that were or were intended to be evaded, the penalty on summary conviction shall be the amount equal to three times that sum (instead of [F2the statutory maximum] [F2the amount of £5,000 mentioned in paragraph 1(3)(a)]).

(5)For the purposes of sub-paragraph (4) above the amounts of levy that were or were intended to be evaded shall be taken to include—

(a)the amount of any tax credit, and

(b)the amount of any repayment of aggregates levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(6)In determining for the purposes of sub-paragraph (4) above how much aggregates levy (in addition to any amount falling within sub-paragraph (5) above) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to aggregates levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayment of aggregates levy to which he was, or would have been, entitled.

MisstatementsU.K.

2(1)A person is guilty of an offence if, with the requisite intent and for purposes connected with aggregates levy—

(a)he produces or provides, or causes to be produced or provided, any document which is false in a material particular; or

(b)he otherwise makes use of such a document;

and in this sub-paragraph “the requisite intent” means the intent to deceive any person or to secure that a machine will respond to the document as if it were a true document.

(2)A person is guilty of an offence if, in providing any information under any provision made by or under this Part of this Act—

(a)he makes a statement which he knows to be false in a material particular; or

(b)he recklessly makes a statement which is false in a material particular.

(3)A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4) below)—

(a)on summary conviction, to a penalty of [F3the statutory maximum] [F3£20,000] or to imprisonment for a term not exceeding six months, or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4)In the case of any offence under this paragraph, where—

(a)the document referred to in sub-paragraph (1) above is a return required under any provision made by or under this Part of this Act, or

(b)the information referred to in sub-paragraph (2) above is contained in or otherwise relevant to such a return,

the amount of the penalty on summary conviction shall be whichever is the greater of [F4the statutory maximum] [F4the amount of £20,000 mentioned in sub-paragraph (3)(a)] and the amount equal to three times the sum of the amounts (if any) by which the return understates any person’s liability to aggregates levy.

(5)In sub-paragraph (4) above the reference to the amount by which any person’s liability to aggregates levy is understated shall be taken to be equal to the sum of—

(a)the amount (if any) by which his gross liability was understated; and

(b)the amount (if any) by which any entitlements of his to tax credits and repayments of aggregates levy were overstated.

(6)In sub-paragraph (5) above “gross liability” means liability to aggregates levy before any deduction is made in respect of any entitlement to any tax credit or repayments of aggregates levy.

Conduct involving evasions or misstatementsU.K.

3(1)A person is guilty of an offence under this paragraph if his conduct during any particular period must have involved the commission by him of one or more offences under the preceding provisions of this Schedule.

(2)For the purposes of any proceedings for an offence under this paragraph it shall be immaterial whether the particulars of the offence or offences that must have been committed are known.

(3)A person guilty of an offence under this paragraph shall be liable (subject to sub-paragraph (4) below)—

(a)on summary conviction, to a penalty of [F5the statutory maximum] [F5£20,000] or to imprisonment for a term not exceeding six months, or to both;

(b)on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding seven years, or to both.

(4)In the case of any offence under this paragraph, where [F6the statutory maximum] [F6the amount of £20,000 mentioned in sub-paragraph (3)(a)] is less than three times the sum of the amounts of aggregates levy which are shown to be amounts that were or were intended to be evaded by the conduct in question, the penalty on summary conviction shall be the amount equal to three times that sum (instead of [F6the statutory maximum] [F6the amount of £20,000 mentioned in sub-paragraph (3)(a)]).

(5)For the purposes of sub-paragraph (4) above the amounts of levy that were or were intended to be evaded by any conduct shall be taken to include—

(a)the amount of any tax credit, and

(b)the amount of any repayment of aggregates levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(6)In determining for the purposes of sub-paragraph (4) above how much aggregates levy (in addition to any amount falling within sub-paragraph (5) above) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to aggregates levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayments of aggregates levy to which he was, or would have been, entitled.

Preparations for evasionU.K.

4(1)Where a person—

(a)becomes a party to any agreement under or by means of which a quantity of taxable aggregate is or is to be subjected to commercial exploitation in [F7England, Wales or Northern Ireland], or

(b)makes arrangements for any other person to become a party to such an agreement,

he is guilty of an offence if he does so in the belief that aggregates levy chargeable on the aggregate in question will be evaded.

(2)Subject to sub-paragraph (3) below, a person guilty of an offence under this paragraph shall be liable, on summary conviction, to a penalty of [F8level 5 on the standard scale] [F8£20,000].

(3)In the case of any offence under this paragraph, where [F9level 5 on the standard scale] [F9the amount of £20,000 mentioned in sub-paragraph (2)] is less than three times the sum of the amounts of aggregates levy which are shown to be amounts that were or were intended to be evaded in respect of the aggregate in question, the penalty shall be the amount equal to three times that sum (instead of [F9level 5 on the standard scale] [F9the amount of £20,000 mentioned in sub-paragraph (2)] ).

(4)For the purposes of sub-paragraph (3) above the amounts of levy that were or were intended to be evaded shall be taken to include—

(a)the amount of any tax credit, and

(b)the amount of any repayment of aggregates levy,

which was, or was intended to be, obtained in circumstances where there was no entitlement to it.

(5)In determining for the purposes of sub-paragraph (3) above how much aggregates levy (in addition to any amount falling within sub-paragraph (4) above) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to aggregates levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayments of aggregates levy to which he was, or would have been, entitled.

Criminal proceedings etc.U.K.

5Sections 145 to 155 of the Customs and Excise Management Act 1979 (c. 2) (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences and penalties under this Part of this Schedule as they apply in relation to offences and penalties under the customs and excise Acts.

ArrestU.K.

F106. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2U.K. CIVIL PENALTIES

EvasionU.K.

F117. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liability of directors etc. for civil penaltiesU.K.

F118. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Misdeclaration or neglectU.K.

F119. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Incorrect records etc evidencing claim for tax creditU.K.

[F129A(1)This paragraph applies where—

(a)a claim is made for a tax credit in such a case as is mentioned in—

(i)section 30(1)(c) of this Act (aggregate used in a prescribed industrial or agricultural process), F13...

(ii)section 30A of this Act (transitional tax credit in Northern Ireland)[F14, or

(iii)section 30B(3) of this Act (special tax credit in Northern Ireland);]

(b)a record or other document is provided to the Commissioners as evidence for the claim; and

(c)the record or document is incorrect.

(2)The person who provided the document to the Commissioners, and any person who provided it to anyone else with a view to its being used as evidence for a claim for a tax credit, shall be liable to a penalty.

(3)The amount of the penalty shall be equal to 105 per cent of the difference between—

(a)the amount of tax credit that would have been due on the claim if the record or document had been correct, and

(b)the amount (if any) of tax credit actually due on the claim.

(4)The providing of a record or other document shall not give rise to a penalty under this paragraph if the person who provided it satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for his having provided it.

(5)Where by reason of providing a record or other document—

(a)a person is convicted of an offence (whether under this Act or otherwise), F15. . .

F15(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

that person shall not by reason of the providing of the record or document be liable also to a penalty under this paragraph.]

Part 3U.K. INTERPRETATION OF SCHEDULE

10(1)References in this Schedule to obtaining a tax credit are references to bringing an amount into account as a tax credit for the purposes of aggregates levy on the basis that that amount is an amount which may be so brought into account in accordance with tax credit regulations.U.K.

(2)References in this Schedule to obtaining a repayment of aggregates levy are references to obtaining either—

(a)the payment or repayment of any amount, or

(b)the acknowledgement of a right to receive any amount,

on the basis that that amount is the amount of a repayment of aggregates levy to which there is an entitlement.