IHTM36191 - Co-operation: what factors to take into account?
When you consider co-operation the abatement should reflect the
extent to which the taxpayer has been prepared to co-operate
throughout our enquiries and help to bring them to a speedy
conclusion.
The time taken to reach a settlement is the starting point
for considering abatement. You need to consider how far this has
been influenced by the actions, or inaction, of the taxpayer or the
agent. But you should also recognise that it will inevitably take
longer to settle cases that are more than ordinarily complicated
and the length of the enquiry period is often influenced as much by
us as by the taxpayer. Age, health or absence may also have to be
taken into account as well as delays resulting from genuine
disagreements or ‘external’ intervention (
IHTM36192).
It is not practical to lay down any fixed time limit to
govern abatement. It should, however, be possible to arrive at a
relationship between the time that could have been taken and that
which has actually elapsed, and between the co-operation which
might have been expected and that which has been given.
Against this background, you should bear in mind the
presence in a case (or the absence from it) of the following
features.
- general delay
- evasiveness in replies
- unwillingness to take action to resolve issues or make progress
- concealment of assets, piecemeal disclosures and untruthfulness
- necessity to issue NODs or information notices to force progress
- necessity to have NODs confirmed by the First-tier Tribunal
- wrangling between taxpayers.
At the end of the day you have to decide where the particular case falls on a scale ranging from full and complete co-operation to out-and-out obstruction, and fix the abatement accordingly.
