The measure

The proposals will update the compliance checking framework for excise duties to make them consistent with the approach now used by HMRC across all other business taxes. The measures are targeted at counteracting the risk of excise fraud and include:

• modernising information and inspection powers;
• aligning the record-keeping rules and the time limits for assessments and claims with changes made to other taxes and duties;
•  a power to inspect documents;
• a power to enter premises used by a trader;
• a power to make unannounced inspection visits;
• new record keeping requirements aligned across all taxes and duties;
• a power to seek information from third parties, such as banks.

Safeguards such as the prohibition of inspection of wholly private premises have been introduced, in line with HMRC's practices on other taxes

Who will be affected?

Businesses and individuals involved with excise duties on alcohol, tobacco, energy products, gambling duties and air passenger duty.

When?

The Government intends to legislate this measure in a Finance Bill to be introduced as soon as possible in the next Parliament. The record-keeping changes and amendments to information and inspection powers are expected to have effect from 1 April 2011. The proposed changes to time limits for making assessments and claims need a transitional period and are not expected to become fully operative before 1 April 2012.