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Publication - Consultation Responses

Replacement to Air Passenger Duty (APD): consultation analysis

Published: 29 Jul 2016
Part of:
Economy
ISBN:
9781786523761

An analysis of the responses to the consultation on a tax to replace Air Passenger Duty (APD).

94 page PDF

803.8kB

94 page PDF

803.8kB

Contents
Replacement to Air Passenger Duty (APD): consultation analysis
8. Fiscal and Administrative Representatives

94 page PDF

803.8kB

8. Fiscal and Administrative Representatives

8.1. UK APD taxpayers are required to appoint a fiscal representative to act on their behalf, where they are liable to be registered for APD but have no business establishment in the UK (or, if an individual, their usual place of residence is in the UK). The role of the representative involves (i) taking responsibility for ensuring the taxpayer meets all APD obligations such that the fiscal representative is liable if these obligations are not met, or (ii) only keeping records and accounts on the taxpayer's behalf (referred to as an "Administrative Representative").

8.2. The consultation asked respondents about their use of fiscal and/or administrative representatives, and the impact of this on their organisation. Respondents' views were also sought on the advantages and disadvantages of retaining a similar system under a Scottish APD replacement tax.

Q17a: Do you currently use a fiscal representative for UK APD?

Q17b: If you answered yes, what impact does this have on your organisation? What would be the advantages and disadvantages of retaining a similar fiscal representative system under a Scottish replacement tax? How could the existing UK system be improved upon?

8.3. Only 1 respondent indicated that they currently use a fiscal representative for UK APD (an airline/airline representative respondent), although two further respondents indicated that they act as fiscal representatives for others (both airline/airline representative respondents).

8.4. The airline/airline representative respondent currently using a fiscal or administrative representative supported the retention of a fiscal representative system under a Scottish replacement tax, making reference to the "principles…of convenience and efficiency" set out in the consultation document. This respondent noted that consistency of approach was particularly important for their position as a franchise carrier, reliant on the accounting structures of the operator which are geared to the requirements of UK APD.

8.5. The two airline/airline representative respondents that act as fiscal representatives for other carriers also supported retaining this system under a Scottish replacement tax. The administrative burden of meeting APD requirements was highlighted by these respondents, particularly for carriers using the Occasional Operator System where the administrative requirements were seen as significant relative to the volume and frequency of flights. Specific reference was made here to requirements to submit nil APD reports and/or choose to de-register for APD, and the challenge in meeting filing and paying APD within seven days of departure. These were cited as factors in carriers choosing to use fiscal representatives. One of these respondents also noted that a Scottish replacement tax may create additional administrative burden for operators required to register separately under the Scottish and rest of the UK systems.

Table 8.1: Q17a Do you currently use a fiscal representative for UK APD?

Yes

No

No response

TOTAL

Airlines and airline representatives

1

6

5

12

Airports and airport representatives

8

8

Other transport and travel organisations

4

9

13

Business, economic development and tourism organisations

2

23

25

Professional tax and accountancy organisations

2

2

Environmental organisations

6

6

Other organisations

2

8

10

Group respondents (Total)

1

14

61

76

Individual

25

59

84

TOTAL

1

39

120

160

Percentage of all respondents

1%

24%

75%

100%

Percentage of those answering question

3%

98%

-

100%

Q18a: Do you currently use an administrative representative for UK APD?

Q18b: If you answered yes, what impact does this have on your organisation? What would be the advantages and disadvantages of retaining a system of administrative representatives under a Scottish replacement tax? How could the existing UK system be improved upon?

8.6. None of the consultation respondents indicated that they currently use an administrative representative, although as noted at Question 18, one respondent indicated that they currently act as an administrative representative for a number of registered operators (an airline/airline representative respondent).

8.7. This respondent supported retaining a system of administrative representatives under a Scottish replacement tax. As was noted at Question 18, this primarily reflected a view that administrative representatives provide an important function for operators where the administrative burden of meeting APD requirements is significant relative to the volume and frequency of flights. This respondent highlighted the administrative burden of meeting APD requirements as a particular issue for carriers using the Occasional Operator System.

Table 8.2: Q18a Do you currently use an administrative representative for UK APD?

Yes

No

No response

TOTAL

Airlines and airline representatives

7

5

12

Airports and airport representatives

8

8

Other transport and travel organisations

4

9

13

Business, economic development and tourism organisations

2

23

25

Professional tax and accountancy organisations

2

2

Environmental organisations

6

6

Other organisations

2

8

10

Group respondents (Total)

0

15

61

76

Individual

22

62

84

TOTAL

0

37

123

160

Percentage of all respondents

0%

23%

77%

100%

Percentage of those answering question

0%

100%

-

100%


Contact

Email: Mike Stewart, Mike.Stewart@gov.scot