Section 94 | Defaults in respect of denatured alcohol: possession of excess alcoholic products

(1)This section applies if, in relation to a person who holds an excise licence under section 91 (the “denaturer”), at a time when an account is taken of the quantity of denatured alcohol in the denaturer’s possession—

(a)there is a difference between the actual amount and the proper amount, and

(b)either—

(i)where the actual amount exceeds the proper amount, the amount of the excess is more than 1% of the permitted amount, or

(ii)where the proper amount exceeds the actual amount, the amount of the excess is more than 2% of the permitted amount.

(2)For the purposes of subsection (1)—

(a)the “actual amount” is the quantity of alcoholic products of any description in the denatured alcohol in the denaturer’s possession;

(b)the “proper amount” is the quantity of alcoholic products of the same description which, according to any accounts that are required to be kept by or under any regulations under section 92, ought to be in the denatured alcohol in the denaturer’s possession.

(3)Where there is a difference between the actual amount and the proper amount, in relation to alcoholic products of a particular description, the “permitted amount” is the aggregate of—

(a)the quantity of alcoholic products of that description when an account was last taken, and

(b)the quantity of alcoholic products of that description that have since been lawfully added to the denaturer’s stock.

(4)In a case within subsection (1)(b)(i), the relevant amount of any alcoholic products of the description to which the difference relates in the denaturer’s possession is liable to forfeiture.

(5)The “relevant amount” for the purposes of subsection (4) is the amount corresponding to the amount of the excess mentioned in subsection (1)(b)(i), or such smaller amount as the Commissioners consider appropriate.

(6)In a case within subsection (1)(b)(ii), the denaturer must, on demand by the Commissioners, pay alcohol duty—

(a)on the amount of alcoholic products (of the same description) equal to the amount of the difference, or

(b)if the Commissioners specify a smaller amount of alcoholic products (of the same description) in the demand, on that amount.

(7)A demand made for the purposes of this section is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments to excise duty) with an assessment and notification under that section of the amount of duty due in consequence of the demand.