§ (2) In section 24(6)(a), after "documents" there shall be inserted "or other information".
§ (3) In paragraph 4 of Schedule 11, for sub-paragraph (1) there shall be substituted—
§ "(1) The Commissioners may, as a condition of allowing or repaying input tax to any person, require the production of such evidence relating to VAT as they may specify.
§ (1A) If they think it necessary for the protection of the revenue, the Commissioners may require, as a condition of making any VAT credit, the giving of such security for the amount of the payment as appears to them appropriate.".
§ (4) For sub-paragraph (2) of that paragraph there shall be substituted—
§ (2)"If they think it necessary for the protection of the revenue, the Commissioners may require a taxable person, as a condition of his supplying or being supplied with goods or services under a taxable supply, to give security, or further security, for the payment of any VAT that is or may become due from—
- (a) the taxable person, or
- (b) any person by or to whom relevant goods or services are supplied.
§ (3) In sub-paragraph (2) above "relevant goods or services" means goods or services supplied by or to the taxable person.735
§ (4) Security under sub-paragraph (2) above shall be of such amount, and shall be given in such manner, as the Commissioners may determine.
§ (5) The powers conferred on the Commissioners by sub-paragraph (2) above are without prejudice to their powers under section 48(7).".
§ (5)In section 72(11) after "supplies" there shall be inserted "or is supplied with".
§ (6) In section 83(1) for "paragraph 4(2)" there shall be substituted "paragraph 4(1A), (2) or (3)".
§ (7) In section 84, after subsection (4D) there shall be inserted—
§ "(4E) Where an appeal is brought against a requirement imposed under paragraph 4(2)(b) of Schedule 11 that a person give security, the tribunal shall allow the appeal unless the Commissioners satisfy the tribunal that—
- (a) there has been an evasion of, or an attempt to evade, VAT in relation to goods or services supplied to or by that person, or
- (b) it is likely, or without the requirement for security it is likely, that VAT in relation to such goods or services will be evaded.
§ (4F) A reference in subsection (4E) above to evading VAT includes a reference to obtaining a VAT credit that is not due or a VAT credit in excess of what is due.".
§ (8) This Resolution shall come into force on 10th April 2003.