Saturday, July 09, 2005

HM Customs and Excise (VAT)

HM Customs & Excise, notice to require security deposits

Viscous small minded people with a personal agenda and a total disregard of the damage they inflict to a company and the eventual redundancies that follow. Don't try to revoke a decision, the 'establishment' will ensure that any ruling will not be overturned. Don't waste the ink writing to Gordon Brown, his office will pass your letters straight back to HM Customs and Excise to answer.

Since the introduction of compulsory security deposits those evil little goblins at HM Customs have within their power the ability to exercise the demise of a company because a) your company operates within a business sector of inherent failure b/ you are penalised for your past failures c) if you have a record of non-compliance. By the way, if your name doesn't fit then you will be penalised for the poor record of your parents and closest spouse.

posted by conservatoryctr

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About the nonsense which is Notice of Requirement to give security

VAT Law

VAT Law allows us to require an amount of security from your business if there is a risk of tax being unpaid by other businesses or individuals in a supply chain in which you trade.

When will you issue a Notice of Requirement to give security?

We may issue a Notice of Requirement to you if:

you have previously been engaged in one or more supply chains involving businesses or individuals who evaded substantial VAT payments in any one or more of the following ways:
  • (a) by deliberately using VAT registration numbers belonging to other businesses without their knowledge;
  • (b) going missing;
  • (c) becoming insolvent owing VAT;
  • (d) deliberately deciding not to pay the VAT;
  • (e) participating in business transactions structured so that it is not possible for the VAT owing to be paid; and, you are unable to show that you have taken reasonable steps to establish the business credentials of your suppliers and customers.

    We will take into account what you know about the nature of the supply and your suppliers and customers. We will not necessarily expect you to know about the full extent of the supply chain, but it is reasonable to assume that you will at least know your supplier and the recipient of your supplies.

    There may also be other circumstances when we will ask you to provide security.

    VAT: extension of security powers

    HMRC Reference: BN CE14/03

    Who is likely to be affected?

    1. The new security measure will only affect businesses which, despite warning, continue to deal with other businesses or individuals that evade paying tax by deliberately using VAT registration numbers belonging to other businesses without their knowledge; going missing; or becoming insolvent owing VAT.

    2. It may also affect those linked to them by trade. Safeguards will be in place to ensure that innocent parties are not affected, and businesses covered by the provision will always be warned in advance of any requirement to provide security under this measure. The provisions are in the interests of legitimate business because fraud and evasion distorts competition and often forces legitimate trade out of business.

    General description of the measure

    3. It extends Customs and Excise's current powers which allow for the requirement to provide security if we consider the business represents a direct risk to the collection of VAT.

    4. Existing security powers are trader specific, and limit action to current and future VAT liabilities of a particular business. The aim of the new proposal is to tackle serious cases of VAT evasion where several businesses act together to attack the tax system. In certain types of fraud the business with the greatest tax liability will often quickly disappear or become insolvent, resulting in serious revenue loss.

    5. The new proposals will allow for a proportionate security requirement from each business that together protects the total tax at risk in a VAT supply chain.

    6. These extended powers will also contain the right of appeal to an independent VAT and Duties Tribunal. In addition, the rights of appeal are being further extended to cover the existing provision of requiring security as a condition of making a repayment.

    Operative date

    7. The new measure will come into effect on 10 April 2003.

    Current law and proposed revisions

    8. The new measure goes beyond the existing Security legislation contained in paragraph 4 of Schedule 11 to the Value Added Tax Act 1994. A revised paragraph 4 (2) to Schedule 11 will be introduced to provide the basis for the extended security requirement. Amendments will also be made to paragraph 4 (1) (to introduce a right of appeal against a requirement of security in relation to the Commissioners making a VAT repayment and to section 83 to provide a right of appeal in relation to the extended measure.

    Further advice

    9. If you have any questions about this change, please contact the National Advice Service on 0845 010 9000.

    Find out more about my individual complaint

    About the nonsense which is Notice of Requirement to give security

  • http://hmcustoms.blogspot.com/

    http://www.hmrc.gov.uk/businesses/

    /ministerial_profiles/minprofile_brown.cfm

    Find out more about my individual complaint

    About the nonsense which is Notice of Requirement to give security