Part IV Administration, collection and enforcement
F3Default surcharges and other penalties and criminal offences
F259BF1 Relationship between sections 59 and 59A.
1
This section applies in each of the following cases, namely—
a
where a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person (whether before or after the coming into force of section 59A) of a surcharge liability notice under section 59; and
b
where a prescribed accounting period which is not a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person of a surcharge liability notice under section 59A.
2
In a case falling within subsection (1)(a) above section 59A shall have effect as if—
a
subject to paragraph (b) below, the section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59A; but
b
any question—
i
whether a surcharge period was begun or extended by the notice, or
ii
whether the taxable person was in default in respect of any prescribed accounting period which was not a section 28 accounting period but ended within the surcharge period begun or extended by that notice,
were to be determined as it would be determined for the purposes of section 59.
3
In a case falling within subsection (1)(b) above section 59 shall have effect as if—
a
subject to paragraph (b) below, the prescribed accounting period that is not a section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59;
b
any question—
i
whether a surcharge period was begun or extended by the notice, or
ii
whether the taxable person was in default in respect of any prescribed accounting period which was a section 28 accounting period but ended within the surcharge period begun or extended by that notice,
were to be determined as it would be determined for the purposes of section 59A; and
c
that person were to be treated as having had outstanding VAT for a section 28 accounting period in any case where the aggregate value of his defaults in respect of that period was, for the purposes of section 59A, more than nil.
4
In this section “
a section 28 accounting period
”, in relation to a taxable person, means any prescribed accounting period ending on or after the day on which the Finance Act 1996 was passed in respect of which that person is liable by virtue of an order under section 28 to make any payment on account of VAT.
Words in s. 59 cross-heading omitted (1.1.2023 for specified purposes, 6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 16; S.I. 2022/1278, reg. 2(3)(4)(a); S.I. 2024/440, reg. 2