PRACTICE DIRECTION 7D – CLAIMS FOR THE RECOVERY OF TAXES AND DUTIES

This Practice Direction supplements CPR rule 7.9

Contents of this Practice Direction

TitleNumber
ScopePara. 1.1
ProcedurePara. 2.1
At the hearingPara. 3.1

Scope

1.1 This practice direction applies to claims by HM Revenue and Customs for the recovery of –

(a) Income Tax,

(b) Corporation Tax,

(c) Capital Gains Tax,

(d) Interest, penalties and surcharges on Income Tax, Corporation Tax or Capital Gains Tax which by virtue of section 69 of the Taxes Management Act 1970 are to be treated as if they are taxes due and payable,

(e) National Insurance Contributions and interest, penalties and surcharges thereon,

(f) student loan repayments deducted by and recoverable from an employer under Part IV of the Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944),

(g) Value added tax and interest and surcharges thereon,

(h) Insurance premium tax and interest and penalties thereon,

(i) Stamp duty land tax and interest and penalties thereon,

(j) the following environmental taxes –

(i) landfill tax and interest and penalties thereon,

(ii) aggregates levy and interest and penalties thereon, and

(iii) climate change levy and interest and penalties thereon,

(k) the following duties of customs and excise –

(i) amusement machine licence duty and penalties thereon,

(ii) air passenger duty and interest and penalties thereon,

(iii) beer duty and penalties thereon,

(iv) bingo duty and penalties thereon,

(v) cider and perry duty,

(vi) excise and spirits duty,

(vii) excise wine duty,

(viii) gaming duty and penalties thereon,

(ix) general betting duty,

(x) lottery duty and penalties thereon,

(xi) REDS (registered excise dealers and shippers) duty,

(xii) road fuel duty and penalties thereon,

(xiii) tobacco duty, and

(xiv) wine and made-wine duty.

1.2 This practice direction also applies to claims by the Welsh revenue Authority for the recovery of a devolved tax (as defined by section 116A(4) of the Government of Wales Act 2006) and interest and penalties thereon.

(Section 116A(4) of the Government of Wales Act 2006 defines a devolved tax as a tax which is specified in Part 4A of that Act as a devolved tax.  For example, section 116L of the 2006 Act specifies as a devolved tax a tax which is charged on a Welsh land transaction and complies with the requirements of that section.)

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Procedure

2.1 If a defence is filed, the court will fix a date for the hearing.

2.2 Part 26 (Case management – preliminary stage) with the exception of rules 26.2 and 26.2A, does not apply to claims to which this practice direction applies.

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At the hearing

3.1 On the hearing date the court may dispose of the claim.

(Section 25A(1) and (2) of the Commissioners for Revenue and Customs Act 2005 (‘the 2005 Act’) provides that a certificate of an officer of Revenue and Customs that, to the best of that officer’s knowledge and belief, a sum payable to the Commissioners under or by virtue of an enactment or by virtue of a contract settlement (within the meaning of section 25(6) of the 2005 Act) has not been paid, is sufficient evidence that the sum mentioned in the certificate is unpaid.)

(Section 168(1) of the Tax Collection and Management (Wales) Act 2016 (“the 2016 Act”) provides that a certificate of Welsh Revenue Authority that a relevant amount (as defined by section 164 of the 2016 Act) has not been paid to Welsh Revenue Authority is sufficient evidence that the sum mentioned in the certificate is unpaid unless the contrary is proved.)

3.2 But exceptionally, if the court does not dispose of the claim on the hearing date it may give case management directions, which may, if the defendant has filed a defence, include allocating the case.

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