(1) For subsections (4) and (5) of section 80 of the Value Added Tax Act 1994 there shall be substituted the following subsection—
(4) The Commissioners shall not be liable, on a claim made under this section, to repay any amount paid to them more than three years before the making of the claim.
§ (2) Subject to paragraphs (3) and (4) below, paragraph (1) above shall be deemed to have come into force on 18th July 1996 as a provision applying, for the purposes of the making of any repayment on or after that date, to all claims under section 80 of the Value Added Tax Act 1994, including claims made before that date and claims relating to payments made before that date.923
- (a) legal proceedings for questioning any decision ("the disputed decision") of the Commissioners, or of an officer of the Commissioners, were brought by any person at any time before that date,
- (b) a determination has been or is made in those proceedings that the disputed decision was wrong or should be set aside,
- (c) the claim is one made by that person at a time after the proceedings were brought (whether before or after the making of the determination), and
- (d) the claim relates to—
- (i) an amount paid by that person to the Commissioners on the basis of the disputed decision, or
- (ii) an amount paid by that person to the Commissioners before the relevant date (including an amount paid before the making of the disputed decision) on grounds which, in all material respects, correspond to those on which that decision was made.
§ (4) Where this paragraph applies in the case of any claim—
- (a) subsection (4) of section 80 of the Value Added Tax Act 1994 (as inserted by this Resolution) shall not apply, and shall be taken never to have applied, in relation to so much of that claim as relates to an amount falling within paragraph (3)(d)(i) or (ii) above, but
- (b) the Commissioners shall not be liable on that claim, and shall be taken never to have been liable on that claim, to repay any amount so falling which was paid to them more than three years before the proceedings mentioned in paragraph (3)(a) above were brought.
§ (5) In paragraph (3)(d) above—
- (a) the reference to the relevant date is a reference to whichever is the earlier of 18th July 1996 and the date of the making of the determination in question; and
- (b) the reference to an amount paid on the basis of a decision, or on any grounds, includes an amount so paid on terms (however expressed) which questioned the correctness of the decision or, as the case may be, of those grounds.
(6) After the subsection (4) inserted in section 80 of the Value Added Tax Act 1994 by this Resolution there shall be inserted the following subsections—
§ (4B) For the purposes of subsection (4A) above the Commissioners' repayment liability to a person at any time is—
- (a) in a case where any provision affecting the amount which they were liable to repay to that person at that time is subsequently deemed to have been in force at that time, the amount which the Commissioners are to be treated, in accordance with that provision, as having been liable at that time to repay to that person; and
- (b) in any other case, the amount which they were liable at that time to repay to that person.
§ (4C) Subsections (2) to (8) of section 78A apply in the case of an assessment under subsection (4A) above as they apply in the case of an assessment under section 78A(1)."
§ (7) In section 83 of that Act, in paragraph (t), after "80" there shall be inserted ", an assessment under subsection (4A) of that section or the amount of such an assessment".924
§ (8) Nothing contained in—
- (a) any regulations under section 25(1) of, or paragraph 2 of Schedule 11 to, that Act relating to the correction of errors or the making of adjustments, or
- (b) any requirement imposed under any such regulations,
§ (9) Paragraphs (6) to (8) above come into force on 4th December 1996.
(10) In this Resolution—
the Commissioners" means the Commissioners of Customs and Excise; and
legal proceedings" means any proceedings before a court or tribunal.
§ (11) Without prejudice to the generality of paragraph 1(2) of Schedule 13 to the Value Added Tax Act 1994, the references in this Resolution, and in subsection (4) of section 80 of that Act (as inserted by this Resolution), to a claim under that section include references to a claim first made under section 24 of the Finance Act 1989.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.