Finance Act 2021

PART 1 Recovery

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.