(1) After section 77 of the Value Added Tax Act 1994 there shall be inserted—
"Liability for unpaid VAT of another
77A Joint and several liability of traders in supply chain where tax unpaid
(1) This section applies to goods of any of the following descriptions—
the Commissioners may serve on him a notice specifying the amount of the VAT so payable that is unpaid, and stating the effect of the notice.
(3) The effect of a notice under this section is that—
are jointly and severally liable to the Commissioners for that amount.
(4) For the purposes of subsection (2) above the amount of VAT that is payable in respect of a supply is the lesser of—
(5) The reference in subsection (4)(b) above to assessing an amount as due from a person includes a reference to the case where, because it is impracticable to do so, the amount is not notified to him.
(6) For the purposes of subsection (2) above, a person shall be presumed to have reasonable grounds for suspecting matters to be as mentioned in paragraph (b) of that subsection if the price payable by him for the goods in question—
(7) The presumption provided for by subsection (6) above is rebuttable on proof that the low price payable for the goods was due to circumstances unconnected with failure to pay VAT.
(8) Subsection (6) above is without prejudice to any other way of establishing reasonable grounds for suspicion.
(9) The Treasury may by order amend subsection (1) above; and any such order may make such incidental, supplemental, consequential or transitional provision as the Treasury think fit.
(10) For the purposes of this section—
(2) After paragraph (r) of section 83 of that Act there shall be inserted—
"(ra) any liability arising by virtue of section 77A;".
(3) This Resolution shall come into force on 10th April 2003.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.