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Our main power to assess excise duty is contained in Finance Act 1994, Section 12 and officers� assessments are usually made under subsections 1 and 1A of Section 12.

Excise assessments are provided for in the Finance act as a means of establishing a legally enforceable debt which can then be pursued as a debt due to the Crown.

Other legal powers of assessment can be found at EAIG2100.

Finance Act 1994 section 12 contains two powers to assess excise duty.

»Ê¹ÚÌåÓýapp first of those powers is provided for by section 12(1). This is the main excise assessment provision and is used when there is a failure to make a return or duty is under-declared or has otherwise become due. This is called the “defaultâ€� power since the power to assess is dependant upon there having been a breach of the conditions described in sections 12(2) and (2A), see EAIG2200.

»Ê¹ÚÌåÓýapp second assessing power is provided for at section 12(1A), and is known as the “ascertainedâ€� power, see EAIG2400. Generally this power is used where duty has become due but there has been no default as described in sections 12(2) or (2A).

»Ê¹ÚÌåÓýapp two powers are not mutually exclusive. Both may apply when an amount of excise duty has become due from a person and there has been a default. However, it is best practice where a default is identified that the section 12(1) power be used.

»Ê¹ÚÌåÓýapp section 12(1A) power must be used in circumstances where there has not been a default.