§ Mr. GarnierTo ask the Minister of State, Lord Chancellor's Department if he will make a statement on his Department's policy on(a) the reform of the law relating to the mistake of law rule at common law and (b) the Law Commission report (1994 No.227) entitled "Restitution: Mistakes of Law, Ultra Vires Public Authority Receipts and Payments". [82308]
§ Mr. HoonThe House of Lords decision in Kleinwort Benson Ltd. v. Lincoln City Council last October means that it is no longer necessary to bring forward legislation to implement the first part of the Law Commission report No. 227 on "Restitution: Mistakes of Law, Ultra Vires Public Authority Receipts and Payments", which dealt with the common law aspects of mistake of law.
241WPart 2 of the report proposed changes to the law to ensure that citizens had effective remedies in circumstances where tax was paid but not due. However, developments since the report was published, including the procedures associated with self-assessment of tax liabilities, have created an acceptable balance of rights and responsibilities between the taxpayer and the state. Therefore, the Government have concluded that it is no longer necessary to implement Part 2 of the report.