Clause 31 - Time limits for demands for penalties
Finance Bill
11:15 am
Mr Michael Jack (Fylde, Conservative)
When the Minister responds to my hon. Friend's observations, I should be grateful if he would expand on the reason for choosing a time limit of 20 years in clause 31(1)(a). It states that a demand notice may not be given
''in the case of a penalty under section 25, more than 20 years after the conduct giving rise to the liability to the penalty ceased.''
That is a long time, and I should like to know why that period was selected and on what basis it was determined to be the right period. I am aware that, over time, application of the Statute of Limitations to Customs and Excise matters has changed, particularly concerning repayments. Instead of going back six years, Customs and Excise has an arrangement to go back three years for repayment of certain moneys. That is reflected, oddly, in subsection (1)(b). I am always interested to know why certain periods are chosen and the thinking behind them. I should be grateful for a full explanation from the Minister.