Sections 6 and 7 and Schedule 1: Transfer of officers’ powers.
48.These sections transfer the functions of Inland Revenue and Customs and Excise staff to officers of Revenue and Customs. They also place a restriction on the transfer, so that powers previously used by Customs and Excise staff may not be used in respect of matters inherited from the Inland Revenue, and powers previously used by Inland Revenue staff may only be used for matters inherited from the Inland Revenue. This ‘ring fencing’ is intended to prevent any accidental widening of the scope of existing officers’ powers. Accidental widening of Commissioners’ powers is prevented by Schedule 2 Part 1.
49.Most powers are defined in their own legislation as relating only to specific functions, and these definitions will remain unchanged. For example, the Inland Revenue power to require someone to produce their financial records can only be used in order to enquire into their direct tax return. But some powers have a wider scope, relating to any matter assigned to the Commissioners of the department in question, or to any tax within the care of that department. Because of the general deeming provisions in section 50 they would come to apply to matters inherited from the other department as well, unless these restrictions in sections 6 and 7 and Schedule 2 Part 1 are introduced.
Example:
50.Customs officers currently have a power under the Proceeds of Crime Act to search premises or persons for cash which may have been obtained through unlawful conduct. This power is restricted to cases where the unlawful conduct relates to a matter dealt with by Customs and Excise, but it is not explicitly limited to indirect taxes and duties. If it were transferred to officers of Revenue and Customs without restriction it could be used, for instance, where the unlawful conduct related to income tax. These sections prevent such an accidental widening of the scope of officers’ powers.
