Schedule 56

Finance Bill – in a Public Bill Committee at 6:45 pm on 23rd June 2009.

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Penalty for failure to make payments on time

Photo of Ian Pearson Ian Pearson Economic Secretary, HM Treasury

I beg to move amendment 312, in schedule 56, page 406, line 38, column 3, leave out from ‘Amount’ to end of line 41 and insert

‘charged in an assessment under paragraph 11(1) of Schedule 2 to OTA 1975’.

Photo of Peter Atkinson Peter Atkinson Conservative, Hexham

With this it will be convenient to discuss Government amendments 313 to 320.

Photo of Ian Pearson Ian Pearson Economic Secretary, HM Treasury

The amendments correct a technical deficiency in schedule 56 that could lead to participators in the petroleum revenue tax regime being liable to penalties for late payment from the wrong date. The amendments align the date that a participator will become liable to a penalty with the other taxes in the table in schedule 56.

Our intention is that for all annual and occasional taxes, including PRT, the penalty date for principal amounts of tax will be 30 days after the due date for payment. If extra tax comes into charge after the due date, the taxpayer should become liable to a penalty only if they fail to pay within 30 days of the due date for the additional tax. The only exception to that is if the taxpayer has failed to submit a return where the penalty date should be the original due date for the tax. That is to ensure that taxpayers do not gain an advantage by avoiding their filing obligations.

The amendments ensure that the new penalties will operate as intended, and I hope that the Committee will accept them.

Amendment 312agreed to.

Amendments made: 313, in schedule 56, page 407, line 7, at end insert—

‘ 15A

Petroleum revenue tax

Amount charged in an assessment made where participator fails to deliver return for a chargeable period

The date falling 6 months and 30 days after the end of the chargeable period’.

Amendment 314, in schedule 56, page 407, line 9, column 2, leave out ‘or 9 to 11’ and insert ‘, 9 or 10’.

Amendment 315, in schedule 56, page 407, line 38, at end insert—

‘ 20A

Petroleum revenue tax

Amount charged in an assessment, or an amendment of an assessment, made in circumstances other than those set out in items 11 and 15A

The date falling 30 days after— (a) the date by which the amount must be paid, or (b) the date on which the assessment or amendment is made, whichever is later’.

Amendment 316, in schedule 56, page 407, line 40, column 2, leave out ‘or 9 to 11’ and insert ‘, 9 or 10’.

Amendment 317, in schedule 56, page 407, line 44, column 3, leave out ‘or 9 to 11’ and insert ‘, 9 or 10’.

Amendment 318, in schedule 56, page 407, line 45, column 2, leave out ‘or 9 to 11’ and insert ‘, 9 or 10’.

Amendment 319, in schedule 56, page 408, line 4, leave out ‘11’ and insert ‘10’.

Amendment 320, in schedule 56, page 408, line 31, at end insert ‘or (c)’.—(Ian Pearson.)

Schedule 56, as amended, agreed to.