Debt and return pursuit - Landfill Tax (LT): power to take recovery action for an LT debt
Landfill tax due from any person shall be recoverable as a debt due to the Crown (paragraph 11 of Schedule 5 to the Finance Act 1996).
Amounts incorrectly charged and amounts assessed (including penalties and interest) as due from any person are deemed to be amounts of LT and may, therefore, be recovered as debts due to the Crown.
Debts due to the Crown
The Legislation covering Environmental Taxes can be found in DMBM450140.
Power to recover assessed amounts as tax due
The power to recover assessed amounts as tax due can be found in Section 50 (7) of the Finance Act 1996.
The power to assess (e.g. prime assessment) is section 50 (1) of the Finance Act 1996. A copy of the assessment is to be sent to the Enforcement and Insolvency Service (EIS) when reporting the debt for civil recovery action.
Power to recover penalties and interest as tax due
The power to recover penalties and interest as tax due can be found in Paragraph 32 (8) of Schedule 5 to the Finance Act 1996. The Penalties Team has policy for interest and civil penalties.
Power to recover incorrectly charged LT
Paragraph 44 of Schedule 5 to the Finance Act 1996 refers to the recovery of the “amount equal to the amount shown as tax” or the “amount equal to the excess” as a debt due to the Crown. The amount is not tax and the practical effect of this is that we do not issue an assessment (Form LT 641). We issue a demand letter and refer to paragraph 44 of the Act. The debt will not be enforced where the amount is refunded to the customer.