Legislation – Finance Act 2021
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SCHEDULE 10Plastic packaging tax: recovery and overpayments
PART 1Recovery
Recovery as a debt due
1
Plastic packaging tax is recoverable as a debt due to the Crown.
Assessments of amounts of plastic packaging tax due
2
(1)
Sub-paragraph (2) applies where it appears to the Commissioners—
(a)
that any period is an accounting period by reference to which a person who is registered or who is liable to be registered is liable to pay plastic packaging tax,
(b)
that an amount of plastic packaging tax for which that person is liable to account by reference to that period has become due, and
(c)
that there has been a relevant default by that person (see sub-paragraph (3)).
(2)
The Commissioners—
(a)
may—
(i)
in a case where the amount of plastic packaging tax due from the person for that period cannot be ascertained, assess the amount due from the person for that period to the best of their judgement;
(ii)
in any other case, assess the amount due from the person for that period, and
(b)
where such an assessment is made, must notify the person of that amount.
(3)
The following are “relevant defaults”—
(a)
a failure to comply with a requirement of regulations under section 58;
(b)
a failure to make a return required to be made by regulations under section 61;
(c)
a failure to keep documents, or provide facilities, necessary to verify returns required by those regulations;
(d)
the making, in purported compliance with a requirement of those regulations, of an incomplete or incorrect return;
(e)
a failure to comply with a requirement imposed by or under section 63;
(f)
a failure to provide the Commissioners with complete or accurate information in complying with any requirement imposed by or under this Part;
(g)
an unreasonable delay in complying with a requirement, where the failure to comply would be a default within any of paragraphs (a) to (f).
(4)
Where it appears to the Commissioners that a default falling within sub-paragraph (3) is a default by a person (A) on whom the requirement to make a return is imposed in A’s capacity as the representative of another person (B), sub-paragraph (1)(b) applies as if the reference to the amount of plastic packaging tax due included a reference to any plastic packaging tax due from B.
3
(1)
Sub-paragraph (2) applies where—
(a)
the Commissioners have made an assessment for an accounting period as a result of a person’s failure to make a return for that period,
(b)
the plastic packaging tax assessed has been paid but no proper return has been made for that period, and
(c)
as a result of a failure to make a return for a later accounting period, the Commissioners make another assessment (“the later assessment”) under paragraph 2 in relation to the later period.
(2)
The Commissioners may, if they consider it appropriate in light of the absence of a proper return for the earlier period, specify in the later assessment an amount of plastic packaging tax due that is greater than the amount that they would have considered to be appropriate had they had regard only to the later period.
Supplementary assessments
4
(1)
Sub-paragraph (2) applies where—
(a)
an assessment has been notified to a person under paragraph 2(2), and
(b)
it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.
(2)
The Commissioners—
(a)
may make a supplementary assessment of the amount of plastic packaging tax due from the person to the best of their judgement, and
(b)
where such an assessment is made, must notify the person of that amount.
Further provision about assessments under paragraphs 2 and 4
5
(1)
An amount assessed and notified to a person under paragraph 2 or 4 is recoverable on the basis that it is an amount of plastic packaging tax due from that person.
(2)
But sub-paragraph (1) does not apply if, or to the extent that, the assessment has been withdrawn or reduced.
Time limits for assessments
6
(1)
An assessment under paragraph 2 or 4 may not be made after the relevant time.
(2)
Except in a case within sub-paragraph (3) the relevant time is the earlier of—
(a)
the end of the period of 4 years from the end of the accounting period to which the assessment relates, or
(b)
the end of the period of 1 year beginning with the day on which evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge.
(3)
Where an assessment of an amount due from a person is made in a case involving loss of plastic packaging tax—
(a)
brought about deliberately by the person, or
(b)
attributable to a failure by the person to comply with a requirement of section 55 or a requirement of regulations under section 58,
the relevant time is the end of the period of 20 years from the end of the accounting period to which the assessment relates.
(4)
In sub-paragraph (3) the reference to a loss brought about by a person includes a reference to a loss brought about by another person acting on behalf of that person.
PART 2Repayments
Repayments of overpaid tax
7
(1)
This paragraph applies where a person (P) has paid an amount to the Commissioners by way of plastic packaging tax which was not tax due.
(2)
The Commissioners are liable, on the making of a claim by P, to repay the amount.
(3)
The Commissioners may by regulations make provision about—
(a)
the form and manner of a claim;
(b)
the information required in support of a claim.
(4)
Except as provided by this paragraph, the Commissioners are not liable to repay any amount paid by way of plastic packaging tax by reason of the fact that it was not tax due.
(5)
This paragraph is subject to paragraph 8.
Supplementary provision about repayment etc
8
(1)
The Commissioners are not liable, on any claim for a repayment of plastic packaging tax, to repay any amount—
(a)
paid more than 4 years before the making of the claim;
(b)
if, or to the extent that, any person has become entitled to a tax credit in respect of that amount.
(2)
It is a defence to any claim for repayment of an amount of plastic packaging tax that the repayment of that amount would unjustly enrich the claimant.
9
(1)
This paragraph applies where—
(a)
an amount has been paid by way of plastic packaging tax which (apart from paragraph 8(2)) would fall to be repaid to a person (P), and
(b)
the whole or a part of the cost of the payment of that amount to the Commissioners has, for practical purposes, been borne by a person other than P.
(2)
Where loss or damage has been, or may be, incurred by P as a result of mistaken assumptions made in P’s case about the operation of any provisions relating to plastic packaging tax, that loss or damage is to be disregarded, except to the extent of the quantified amount, in the making of a relevant determination.
(3)
In sub-paragraph (2)—
(a)
“the quantified amount” means the amount (if any) which is shown by P to constitute the amount that would appropriately compensate P for loss or damage shown by P to have resulted, for any business carried on by P, from the making of the mistaken assumptions;
(b)
a “relevant determination” means a determination for the purposes of paragraph 8(2) as to—
(i)
whether or to what extent the repayment of an amount would enrich P, or
(ii)
whether or to what extent any enrichment of P would be unjust.
(4)
The reference in sub-paragraph (2) to provisions relating to plastic packaging tax is a reference to—
(a)
any provision made by or under any enactment which relates to the tax or to any matter connected with it, or
(b)
any notice published by the Commissioners under or for the purposes of any such provision.
Reimbursement arrangements
10
(1)
The Commissioners may by regulations make provision for reimbursement arrangements to be disregarded for the purposes of paragraph 8(2) except where the arrangements—
(a)
contain such provision as may be required by the regulations, and
(b)
are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to the Commissioners.
(2)
In this paragraph “reimbursement arrangements” means arrangements for the purposes of a claim to a repayment of plastic packaging tax which—
(a)
are made by a person for the purpose of securing that the person is not unjustly enriched by the repayment of any amount in pursuance of the claim, and
(b)
provide for the reimbursement of a person who has for practical purposes borne the whole or any part of the cost of the original payment of that amount to the Commissioners.
(3)
Regulations under this paragraph may (among other things) make provision requiring reimbursement arrangements to contain provision—
(a)
requiring a reimbursement for which the arrangements provide to be made within a specified period after the repayment to which it relates;
(b)
for the repayment of amounts to the Commissioners where those amounts are not reimbursed in accordance with the arrangements;
(c)
requiring interest paid by the Commissioners on any amount repaid by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay the Commissioners;
(d)
requiring records of a specified description relating to the arrangements to be kept and produced to the Commissioners, or to an officer of HMRC;
(e)
imposing obligations on specified persons for the purposes of provision made under paragraphs (a) to (d).
(4)
Regulations under this paragraph may—
(a)
make provision about the form, manner and timing of undertakings given to the Commissioners in accordance with the regulations;
(b)
provide for those matters to be determined by the Commissioners in accordance with the regulations.
Assessment for excessive repayment
11
(1)
Sub-paragraph (3) applies where—
(a)
an amount has been paid at any time to a person by way of a repayment of plastic packaging tax, and
(b)
the amount paid exceeded the amount which the Commissioners were liable at that time to repay to that person.
(2)
Sub-paragraph (3) also applies where a person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 10(3)(b), (c) or (e).
(3)
The Commissioners may—
(a)
to the best of their judgement, assess the amount of the excess (in a case within sub-paragraph (1)) or the amount due (in a case within sub-paragraph (2)), and
(b)
where such an assessment is made, notify the amount to the person.
(4)
Subject to sub-paragraph (5), where—
(a)
an assessment is made on any person under this paragraph in respect of a repayment of plastic packaging tax, and
(b)
the Commissioners have power under Part 1 of this Schedule to make an assessment on that person as to an amount of plastic packaging tax due from that person,
the assessments may be combined and notified to the person as one assessment.
(5)
A notice of a combined assessment under sub-paragraph (4) must separately identify the amount being assessed in respect of repayments of plastic packaging tax.
Supplementary assessments
12
(1)
Sub-paragraph (2) applies where—
(a)
an assessment has been notified to a person under paragraph 11, and
(b)
it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.
(2)
The Commissioners may—
(a)
on or before the last day on which the assessment under paragraph 11 could have been made, make a supplementary assessment of the amount of plastic packaging tax due from the person, and
(b)
where such a supplementary assessment is made, notify the amount to that person.
Further provision about assessments under paragraphs 11 and 12
13
(1)
Where an amount has been assessed and notified to a person under paragraph 11 or 12, it is recoverable on the basis that it is an amount of plastic packaging tax due from that person.
(2)
But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.
Time limit for assessments
14
An assessment under paragraph 11 or 12 may not be made more than 2 years after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.