AGL8300 - Penalties: Misdeclaration of end use

The circumstances that will give rise to the issue of a penalty are covered in sections 16.7 and 16.9 of Notice AGL1 - see link in AGL1100.

The penalty is a fixed penalty equal to 105% of the levy due, therefore where a person makes a successful challenge against the imposition of the penalty it must be mitigated in full.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) AGL5500(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Procedure

This section relates to the procedures to follow for issuing civil penalties to unregistered businesses who have incorrectly declared an end-use relief, including those who make an error correction.

[Notification of civil penalties for misdeclaration of end-use relief to businesses that are registered for Aggregates Levy should be notified using form AL40.]

  1. Unregistered businesses (end-users and merchants)

You should issue all notifications of penalties to businesses that are not registered for the levy on an AL99 letter (please use the AL99 text at AGL8400 on your own letterheads):

  • The AL99 letter should be sent with part 2 ONLY of an EX 601 (Traders Remittance copy)
  • The top copy of EX 601 Part 1 should be kept on file
  • Copies of the AL99 and EX 601 (Part 3) (Accounts [Key-in]) should be sent to CCU Team, 8th Floor South Central, Alexander House, Southend. EX 601 (Part 3) should be noted in red ink “AGG X”

Please note: If a merchant provides an incorrect declaration to the supplier they will be liable for the misdeclaration of end-use penalty. If an end-user supplies an incorrect certificate to the merchant who relies on this when making a declaration to the supplier the end-user will be liable to the misdeclaration of end-use penalty.

  1. Unprompted error correction

Where an unregistered business notifies us of an incorrect declaration of end-use:

  • An AL99A should be sent (please use the AL99A text at AGL8500 on your own letterheads), plus part 2 ONLY of an EX 601 (Traders Remittance copy) if no payment was received with the disclosure. If a cheque is sent with the error correction send it to CCU with copies of the AL99A letter and EX 601 as detailed below
  • Top copy (EX 601 Part 1) should be kept on file, marked in red ink “voluntary disclosure”
  • A copy of the AL99A letter and Copy 3 (Accounts [Key-in]) of the EX 601 is to be sent to CCU, 8th Floor South Central, Alexander House, Southend, marked in red ink “voluntary disclosure - AGG X “
  1. A spreadsheet will be maintained by Banking to record details of all penalties issued. This will be e-mailed monthly to the central non-VAT Debt Management Unit (DMU) team to pursue any debts and record them on IDMS as appropriate.
  2. The spreadsheet will also be e-mailed monthly to the Unit of Expertise in Newcastle.
  3. Banking are not able to return copies of the EX 601 when the penalty has been paid. If the local officer wishes to know whether a penalty has been paid they must either e-mail the UoE or the CCU team to confirm payment has been made.