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Bingo duty abolition
In the 2002 Budget, the Chancellor of the Exchequer announced that he was going to consider the scope for abolishing the tax on bingo players' stakes and replace it with a tax on bingo companies' gross profits. As part of this review, the Government has published a consultation document on the abolition of bingo duty. The document asks bingo clubs, trade bodies, their advisers, players and other interested parties for their views on:
Bingo duty abolition
In the 2002 Budget, the Chancellor of the Exchequer announced that he was going to consider the scope for abolishing the tax on bingo players' stakes and replace it with a tax on bingo companies' gross profits. As part of this review, the Government has published a consultation document on the abolition of bingo duty. The document asks bingo clubs, trade bodies, their advisers, players and other interested parties for their views on:
* the proposal to introduce a gross profits tax like those introduced for betting and pools taxation;
* what they believe the rate of this new tax should be;
* whether the VAT treatment of 'par fees' (the charge bingo clubs make for running the bingo games) should be changed;
* how 'gross profits' should be defined;
* how compliance costs could be reduced;
* when the reforms should be introduced; and
* whether there is any need to review the current scope of bingo taxation.
Copies of the consultation document are available from Ian Moules, HM Customs and Excise, Bingo Duty Consultation, 1st Floor West, New King's Beam House, 22 Upper Ground, London SE1 9PJ, tel: 020 7865 4701, fax: 020 7865 5055, e-mail: ian.moules@hmce.gsi.gov.uk. It is also available on Customs' website: www.hmce.gov.uk.
(Source: Customs Business Brief 24/2002 dated 28 August 2002.)
Delivery charges
The House of Lords has allowed Customs' appeal in Commissioners of Customs and Excise v Plantiflor [2002] SWTI 1093. Consequently, postal charges are exempt from VAT when delivery is supplied by the Post Office or Parcelforce, but standard rated when supplied by other carriers. Businesses making supplies of delivered goods must normally standard rate the postal charge element, even if a separate charge is shown for delivery or delivery is performed by the Post Office or Parcelforce.
The action to be taken will depend upon which of the following categories taxpayers fell into following the Court of Appeal decision:
* Taxpayers who sought a refund, which was repaid as overpaid tax will now be required to make a repayment. They should make a voluntary disclosure to their local VAT office, so that repayment can be made as soon as possible.
* Taxpayers who had assessments raised, but not collected will be contacted regarding payment in the near future.
* Taxpayers who have not been assessed should make a voluntary disclosure to their local VAT office if they know they have under-declared. If a voluntary disclosure is not made, and Customs later discover this, the taxpayer may also be liable to a penalty.
(Source: Customs Business Brief 23/2002 dated 20 August 2002.)
