109. Security to be given by certain taxable persons

This section deals with security to be given to Revenue. Revenue may require security from a trader for any VAT that may become due. The form and manner of such security is to be determined by Revenue. Normally it will be in the form of an insurance bond, bank guarantee or similar instrument.

A specific right of appeal to the Appeal Commissioners against any such requirement to provide security is also contained in the section. An appeal may be lodged in accordance with section 949I of the Taxes Consolidation Act 1997 within the period of 30 days after the date of the notice of requirement of security. The security requirement is only used on a selective basis, where it is clear that the particular person or situation involved represents a special risk to the Exchequer.

(Note that there is a separate provision in section 99 allowing Revenue to obtain security before a VAT refund is given.)

Relevant Date: Finance Act 2020