Finance Act 2015

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Amendment of section 109 of Finance Act 2001 (authorisation of warehousekeepers and approval of tax warehouses)

47. Section 109 of the Finance Act 2001 is amended—

(a) by inserting the following after subsection (2):

“(2A) The granting to, or the holding by, an applicant or holder, as the case may be, of an authorisation shall be conditional on the applicant or authorised warehousekeeper complying with excise law in relation to excisable products, including the requirements of this Chapter relating to the systems (including the accounting and stock control systems) and procedures of the business to which the authorisation relates.”,

(b) by substituting the following for subsection (3):

“(3) (a) The Commissioners shall grant an authorisation under this section only where it is shown to their satisfaction that the applicant, or where the applicant is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997 ) of that company, can satisfy the conditions of authorisation.

(b) The Commissioners shall grant an authorisation only where it is shown to their satisfaction that the business activity to be carried out in the tax warehouse under the authorisation is to be undertaken with a view to the realisation of profits from legitimate trade in excisable products.

(c) The Commissioners shall not grant an authorisation where an applicant or, where the applicant is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997 ) of that company has, in the 10 years prior to such application for the authorisation, been convicted of—

(i) any indictable offence under the Acts referred to in section 1078 (1) of the Taxes Consolidation Act 1997 , or

(ii) any corresponding offence under the law of another Member State.

(d) The Commissioners shall not grant an authorisation where an applicant or, where the applicant is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997 ) of that company, does not hold a current tax clearance certificate issued under section 1094 of the Taxes Consolidation Act 1997 .

(e) The Commissioners shall not grant an authorisation to an applicant for the production or processing of excisable products where such applicant does not hold a current licence for such production or processing where such licence is required under excise law.

(f) The Commissioners shall grant an authorisation to an applicant only where it is shown to their satisfaction that the systems (including the accounting and stock control systems) and procedures of the business to which the application for the authorisation relates will provide a full and true record of all transactions of that business in a form readily accessible to the Commissioners.

(g) The Commissioners shall grant an authorisation to an applicant only where it is shown to their satisfaction that the activity to be carried out under the authorisation will be conducted solely for the benefit of the applicant.

(h) The Commissioners shall not grant an authorisation where the applicant or, where the applicant is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997 ) of that company, has been authorised previously and there has been a contravention of, or a failure to comply with, the conditions of that authorisation and the applicant has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied.

(i) The Commissioners shall grant an authorisation only where it is shown to their satisfaction that the premises or place relating to the approval of a tax warehouse under subsection (5) is suitable for the security of the excisable products to be produced, held or processed in, or to be dispatched from or received into, such premises or place.”,

(c) by inserting the following after subsection (11):

“(11A) Where an authorised warehousekeeper ceases to carry out the activities for which the authorisation was granted—

(a) the authorisation shall cease to have effect, and

(b) the authorised warehousekeeper shall notify the Commissioners, in writing, of the cessation of the activity for which the authorisation was granted before the date on which the authorised warehousekeeper ceases to act as such.”,

and

(d) by substituting the following for subsection (12):

“(12) An authorisation under this section is at all times subject to the conditions of authorisation, and the Commissioners may revoke an authorisation where—

(a) the authorised warehousekeeper or, where the authorised warehousekeeper is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997 ) of that company has in the preceding 10 years been convicted of—

(i) any indictable offence under the Acts referred to in section 1078 (1) of the Taxes Consolidation Act 1997 , or

(ii) any corresponding offence under the law of another Member State,

(b) the Commissioners are satisfied that there has been a contravention of, or failure to comply with, a requirement of excise law in relation to the excisable products for which the authorisation was granted—

(i) by the authorised warehousekeeper or, where the holder of the authorisation is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997 ) of that company, or

(ii) at the premises or place approved as a tax warehouse,

and the authorised warehousekeeper has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(c) the Commissioners are satisfied that there has been a contravention of, or failure to comply with, any of the conditions of authorisation by the authorised warehousekeeper and the authorised warehousekeeper has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(d) the authorised warehousekeeper, when applying for that authorisation, or for approval of a tax warehouse, provided information that was false or misleading in a material respect,

(e) the authorised warehousekeeper does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity carried out under the authorisation is undertaken with a view to the realisation of profits from legitimate trade in excisable products,

(f) the authorised warehousekeeper does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity carried out under the authorisation is conducted solely for the benefit of the authorised warehousekeeper,

(g) the authorised warehousekeeper does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the systems (including the accounting and stock control systems) and procedures of the business to which the authorisation relates provide a full and true record of all transactions of that business in a form readily accessible to the Commissioners, or

(h) the authorised warehousekeeper does not, when required to do so by the Commissioners, show to their satisfaction that the premises or place approved as a tax warehouse is suitable for the security of the excisable products produced, held or processed in, or to be dispatched from or received into, such premises or place.”.