FINANCE BILL 2001
CLAUSE 24: THE REGISTER
SUMMARY
1. This clause sets out the main provisions for registering persons for aggregates levy.
DETAILS OF THE CLAUSE
2. Subsection (1) provides that the Commissioners shall establish and maintain a register of persons who are required to be registered for aggregates levy.
3. Subsection (2) provides that a person is required to be registered for the levy if he:
(a) carries out taxable activities (as defined in subsection (3)) and
(b) is not exempted from registration by regulations made under subsection (4).
4. Subsection (3) provides that a person carries out a taxable activity if he is responsible for subjecting a quantity of aggregate to commercial exploitation in the UK.
5. Subsection (4) enables the Commissioners to make regulations which may provide for persons carrying out taxable activities to be:
(a) exempt from registration; or
(b) exempt from such obligations and liabilities required of registered persons as may be prescribed.
6. Subsection (5) provides that the Commissioners shall keep such information in the register as they consider appropriate for the purposes of the care and management of the levy.
7. Subsection (6) provides that the Commissioners may register premises as a registered site under the name of a person in the register where it appears that the person is operating or using those premises for:
(a) winning aggregate;
(b) crushing rock;
(c) applying an exempt process to any aggregate;
(d) storing aggregate; or
(e) landing marine dredged aggregate in the UK.
8. Subsection 7 provides that the Commissioners may limit the boundaries of any registered site so as to guard against tax avoidance.
9. Subsection 8 provides that where a registered site is deemed to be the originating site of any aggregate, its boundaries shall be determined as set out in the register at the time when any aggregate at that site:
(a) in so far as it is rock, is crushed;
(b) results from the carrying out of an exempt process there; or
(c) is won or landed there.
10. Subsection 9 gives effect to Schedule 4 to this Act (provisions with respect to registration for the purposes of the levy).
11. Subsection 10 provides that the registration provisions shall come into force on a date that the Treasury may appoint by order and that different dates may be appointed for different purposes.
SCHEDULE 4
AGGREGATES LEVY: REGISTRATION
Paragraph 1. Notification of registrability, etc.
A unregistered person must notify the Commissioners if he intends to carry out a taxable activity or is required to be registered for the purposes of aggregates levy (or would be so required but for an exemption from registration). Failure to do so may result in a penalty equal to 5% of the relevant levy (or £250 if greater or there is no relevant levy). Relevant levy refers to the levy for which the person is liable to account for from the date on which he was required to notify (or would have been so required but for an exemption from registration), to the date on which he actually notifies or the Commissioners become aware of his requirement to be registered (or that he would be so required but for an exemption from registration).
However, failure to notify a requirement to register will not incur a penalty if the person satisfies the Commissioners (or an appeal tribunal) that he has a reasonable excuse for the failure. If a person by reason of any conduct mentioned above has been convicted of any offence or assessed to a penalty for evasion, he shall not in addition be liable to a penalty under this paragraph.
Paragraph 2. Form of registration
The Commissioners shall register a person who is required to be registered for aggregates levy with effect from the time when the requirement arose. Provision is also made for a number of companies to be registered as a group or for a company to be registered in the names of its divisions. The paragraph also provides that the registration of a partnership/unincorporated body may be in the name of the firm or body.
Paragraph 3. Notification of loss or prospective loss of registrability
A person must notify the Commissioners if they cease to be registrable. Failure to do so shall result in liability to a penalty of £250.
Paragraph 4. Cancellation of registration
When the Commissioners are satisfied that a person is no longer registrable (i.e. has ceased to carry out taxable activities and does not have the intention of carrying out taxable activities) they may cancel his registration with effect from such time after he last carried out such activities as appears appropriate.
Where a registered person is exempt from registration, the Commissioners may cancel his registration with effect from the time when he became exempt or such later time as appears appropriate.
The time of cancellation of registration is dependent on certain conditions being met. For example, that the registered person is entitled to be deregistered, that all levy due has been paid, that no tax credit is outstanding and that all returns have been duly submitted.
The Commissioners may cancel a person's registration with effect from the date of registration where they are satisfied that he was never in fact required to be registered or was at all relevant times exempt from registration.
Paragraph 5. Correction of the register etc.
This paragraph provides a regulation making power to enable the Commissioners to correct the register. The regulations may make provision requiring registered persons, those required to be registered and those who would be so required but for any exemption to notify the Commissioners of any relevant changes in their circumstances.
Paragraph 6. Supplemental regulations about notifications
This paragraph provides a regulation making power to make specific provisions relating to notification to cover time limits for notification (which time limits can be extended), the form and manner of the notification and the information to be provided. They may also provide for further notification where the information provided is or becomes inaccurate.
Paragraph 7. Publication of information on the register
This paragraph enables certain information contained in the register to be lawfully published by the Commissioners such as the names of registered persons, the particulars of registered sites and information relating to groups of companies.
Paragraph 8. Interpretation of Schedule
This paragraph deals with the interpretation of various expressions used in this Schedule.