OT45800 - Non-residents working on the UK continental shelf: exemption for licensee from recovery of tax - cancellation of exemption certificate
Outline
An officer of HMRC may, by notice in writing to the person to whom the exemption certificate was issued (normally the field operator - not the non-resident contractor) cancel an exemption certificate from such date, not earlier than 30 days after service of the notice, as may be specified in the notice (TMA70\S77F(4)).
Grounds for cancellation
A certificate may be withdrawn when HMRC is no longer satisfied that the person who applied for it will comply with any obligations imposed on him by the Taxes Acts. Grounds for withdrawal would include failure to reply to correspondence, provide statements of profits or pay assessed tax.
Pre-cancellation warnings
Immediately the failure is detected, LB Oil & Gas will warn the non-resident or his agent that if the failure is not corrected within a reasonable time the certificate will be cancelled. If the failure is not rectified within the time scale specified in the warning letter a notice of cancellation will be sent to all licensees to which certificates have been issued.
Specimen notice of cancellation
NOTICE CANCELLING AN EXEMPTION CERTIFICATE
A certificate was issued on ………….….. number ……………… in pursuance of paragraph 2 of Section 77F of the Taxes Management Act, 1970 exempting the holder of licence number …………………..….. from liability for certain unpaid tax by ……………………………. [name of original applicant]
In accordance with paragraph 3 of Section 77F of the Taxes Management Act 1970, I now give you notice that the certificate is cancelled with effect from ……………..... i.e. 30 days after the service of this notice.
You will therefore be liable in accordance with paragraph 1 of Section 77C of the said Act 1970, for any tax which becomes due after that date from ……………………….... [name of original applicant] or is assessed on ………………………….. [name of original applicant] but remains unpaid for more than 30 days.
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Signed on behalf of the Commissioners of HM Revenue and Customs
Date...................................................................