Value Added Tax Act 1983 (repealed 1.9.1994)

4 (1) Where a person has failed to make any returns required under this Act or to keep any documents and afford the facilities necessary to verify such returns or where it appears to the Commissioners that such returns are incomplete or incorrect they may assess the amount of tax due from him to the best of their judgment and notify it to him.

[F1 (2) In any case where, for any prescribed accounting period, there has been paid or credited to any person-

(a) as being a repayment or refund of tax, or

(b) as being due to him under section 14(5) of this Act,

an amount which ought not to have been so paid or credited, [F2 or which would not have been so paid or credited had the facts been known or been as they later turn out to be,]the Commissioners may assess that amount as being tax due from him for that period and notify it to him accordingly.

(2A) An amount-

(a) which has been paid to any person as being due to him under section 14(5) of this Act; and

(b) which, by reason of the cancellation of that person’s registration under paragraph 9 or 10 of Schedule 1 to this Act, ought not to have been so paid,

may be assessed under sub-paragraph (2) above notwithstanding that cancellation.]

(3) Where a person is assessed under sub-paragraphs (1) and (2) above in respect of the same prescribed accounting period the assessments may be combined and notified to him as one assessment.

(4) Where the person failing to make a return, or making a return which appears to the Commissioners to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, sub-paragraph (1) above shall apply as if the reference to tax due from him included a reference to tax due from that other person.

(5) An assessment under sub-paragraph [F3 (1), (2) or (2A)]above of an amount of tax due for any prescribed accounting period shall not be made after the later of the following—

(a) two years after the end of the prescribed accounting period; or

(b) one year after evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge,

but may, where further such evidence comes to their knowledge after the making of such an assessment, be made in addition to that assessment.

(6) Where a taxable person has acquired or imported any goods in the course or furtherance of any business carried on by him the Commissioners may require him from time to time to account for the goods; and if he fails to prove that the goods have been or are available to be supplied by him [F4 or have been exported from the United Kingdom otherwise than by way of supply]or have been lost or destroyed they may assess to the best of their judgment and notify to him the amount of tax that would have been chargeable in respect of the supply of the goods if they had been supplied by him.

[F5 (6A) In any case where,—

(a) as a result of a person’s failure to make a return for a prescribed accounting period, the Commissioners have made an assessment under sub-paragraph (1) above for that period, and

(b) the tax assessed has been paid but no proper return has been made for the period to which the assessment related, and

(c) as a result of a failure to make a return for a later prescribed accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in sub-paragraph (4) above, the Commissioners find it necessary to make another assessment under sub-paragraph (1) above,

then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than which they would otherwise have considered to be appropriate.]

(7), (8)

F6 (9) Where an amount has been assessed and notified to any person under sub-paragraph [F7 (1), (2), (2A) or (6)]above it shall, subject to the provisions of this Act as to appeals, be deemed to be an amount of tax due from him and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.

(10) For the purposes of this paragraph notification to a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting as aforesaid shall be treated as notification to the person in relation to whom he so acts.

Textual Amendments

F1 Sch. 7 para. 4(2)(2A) substituted for sub-paragraph (2) by Finance Act 1988 (c. 39, SIF 40:2), s. 15(2)

F2 Words inserted by Finance Act 1990 (c. 29, SIF 40:2), s. 15(1)(2)

F3 Words substituted by Finance Act 1988 (c. 39, SIF 40:2), s. 15(3)

F4 Words inserted by Finance Act 1985 (c. 54, SIF 40:2), s. 23, Sch. 7 para. 1(2)

F5 Sch. 7 para. 4(6A) inserted by Finance Act 1985 (c. 54, SIF 40:2), s. 23, Sch. 7 para. 1(3)

F6 Sch. 7 para. 4(7)(8) superseded and repealed by Finance Act 1985 (c. 54, SIF 40:2), s. 22, Sch. 27 Pt. IV

F7 Words substituted by Finance Act 1988 (c. 39, SIF 40:2), s. 15(4)

Modifications etc. (not altering text)

C1 Sch. 7 para. 4 restricted by Finance Act 1985 (c. 54, SIF 40:2), s. 22(1)(a)

C2 Sch. 7 para. 4 amended by Finance Act 1985 (c. 54, SIF 40:2), s. 22(7)

C3 Sch. 7 para. 4 modified by S.I. 1987/2015, reg. 10.

C4 Sch. 7 para. 4(10) extended by Finance Act 1985 (c. 54, SIF 40:2), s. 21(8)