AH0601 - Preparation for Hearing: Contentious and non-contentious appeals

This section of the Appeals Handbook is particularly applicable to contentious or more complex appeals which are often undertaken by RAUs (see AH0550 and subsequent paragraphs). However, much of what follows is relevant to the routine appeals which are undertaken by local offices and even where the RAU takes ownership of an appeal it is likely that much of the preparatory work will be done by the case officer.

What is a contentious appeal?

A “contentious appeal” is not specifically defined by statute. Contentious cases are those where there are points of principle or disputed facts under discussion.

Where the return and/or other information and documents have been submitted and no further factual information is required treat the appeal as contentious if the liability etc cannot be settled by agreement.

An appeal should also be regarded as contentious where the Inspector has

• in some way expressed or implied dissatisfaction with any aspect of the return, e.g. by opening an enquiry, so that a failure to comply with a request for further information may indicate that the taxpayer, or his agent, is prepared to argue that the accounts or return which they have already provided are sufficient `evidence on the merits of the appeal` or
• made a discovery assessment or
• made a jeopardy amendment.

Contentious appeals include those against enquiry conclusions, refusals to grant a sub- contractor’s certificate and penalty determinations.

What is a non-contentious appeal

Where information or documents have been requested but not supplied, for example where an appeal is made against the issue of a notice under TMA70/S19A or FA98/SCH18/PARA27, the appeal should normally be treated as non-contentious appeal since there are at that stage no points of principle or disputed facts under discussion.

Such an appeal should not be referred to the Commissioners until the taxpayer has been given a reasonable time in which to submit the information required.

Other appeals regarded as non-contentious include those against fixed late filing penalties and surcharges.