Having started your enquiries you must continue with them
until you are satisfied about the taxpayer’s innocence or
negligence. You should also deal with any response you receive as
soon as possible. If you fail to do this or leave your
investigation in abeyance for an unreasonable time, then your
ability to take up the investigation at a later time may be
jeopardised. The taxpayer may be entitled to assume that you are
content with the response given or construe your silence as tacit
acceptance of any explanation offered.
You should take care to distinguish fact from assertion. If
assertions are made, you should ensure that these are tested by,
for example, calling for documentary evidence, such as attendance
notes. Neither should you make assumptions (
IHTM36162).
If after establishing all the facts you are unsure about or
have doubts about whether or not the taxpayer has been negligent
you should discuss the case with your manager, who will if
necessary consult the Penalty Portfolio Holder. Our practice is
always to resolve any remaining doubts we have in favour of the
taxpayer.
Arguments that we have acted inconsistently (
IHTM36163) or that that a penalty is
not chargeable because any underpayment is met out of sums already
placed on deposit (
IHTM36164) should not stop you making
enquiries.
