REPAYMENTS OF OVERPAID LEVY (Hansard, 23 April 2001)

§ Mr. Ottaway
Clause 31 should, in truth, be considered with clause 32. It deals with repayments of overpaid levy. It provides that when a person has paid an amount to the commissioners by way of aggregates levy that was not levy due to them, they should he liable to repay the amount. That amount is repaid only on the making of a claim.
99 It would be helpful if the Minister spelled out his thinking with regard to the clause. How does he see it working, and under what circumstances are people likely to pay a levy that was not due? Will it be as a result of overcharging by Customs and Excise, in which case it would be an error on its part? Will it be repaid with interest under those circumstances?
Under what circumstances does the Financial Secretary envisage that a claim will be made? What would happen, for example, if Customs and Excise realised that some poor chap had overpaid the levy without realising it? Is it under an obligation to repay the money? Under clause 31(2), that does not seem to be the case. Will the Minister consider what would happen in the event of an error being made of which the levee was not aware? There is a three-year time limit under clause 32, which we can perhaps deal with later, along with schedule 8. It would assist the Committee if the Minister could enlighten us with regard to these important administrative points.

§ Mr. Timms
The clause provides for the repayment of overpaid levy. It enables Customs and Excise to prescribe in regulations the form and manner of claims for repayment. The measures allows for adjustments once errors of this nature are identified. It is clearly a necessary component of any fair tax and, as with so many other measures that we have been discussing, is a replication of measures that apply widely across the tax system and work well.
It will not be difficult for people to claim repayment. The hon. Gentleman referred to clause 31(2). The procedure will be kept as simple as possible. Details will be published in a public notice prior to the commencement date so there should be no difficulty about how to do that. The system will be designed to be fair; Customs and Excise will require evidence of any overpayment that is claimed. That will be specified in regulations and in the public notice. There will, of course, be the right of appeal against an initial decision by Customs and Excise, as is conventional, in the form of a review by Customs and Excise and, if the party is still unsatisfied, by appeal to an independent tribunal. These established and familiar arrangements work well elsewhere, and I hope that the Committee accepts that they will do so in this instance.

§ Mr. Ottaway
I am grateful for that, but the Minister has not dealt with my central point. What would happen when the person levied—the payer—had not made a claim because he was unaware that he had overpaid? Would Customs and Excise be under a duty to repay or to notify the person on whom the levy had been laid? The point applies in several areas. I have often wondered what happens in the Inland Revenue. If, for example, the Minister had inadvertently overpaid tax, I am sure that he would expect the Revenue to notify him if it knew about it. The same should apply here. The point is unclear, and I wonder whether the Minister might think about it and return to it on Report.

§ Mr. Timms
I shall be happy to reflect on the point. I do not believe that the Bill contains anything novel by comparison with arrangements that apply elsewhere. The position on liability and responsibility is set out in 100 clause 31(2), which compares with what happens elsewhere in the tax system. I have no doubt that if the commissioners became aware of overpayment, they would take steps to put it right.
It would be unusual for the commissioners to be aware that tax had been overpaid if the person who had paid the levy was not aware of it. I cannot think what circumstances might give rise to that, but if the hon. Gentleman wants to raise any variations on that theme, I shall be happy to think about them.