A taxpayer who is the subject of an enquiry into a return may
apply to the General or Special Commissioners for a direction
requiring an officer of Revenue & Customs to issue a closure
notice within a specified period (TMA70/S28A(4). The
taxpayer’s right to seek a direction for a closure notice
does not affect your unconditional right to enquire into a return.
By statute the application is direct to the Commissioners.
Offices should liase with their Commissioners (via the nominated
liaison office if appropriate) to ensure that they are notified as
soon as possible of any applications which are sent to the
Commissioners directly.
In practice, some taxpayers may contact HMRC for a hearing to
be arranged. All closure applications should be reviewed by an
officer in Band C or above and referred to the Commissioners for a
determination at the earliest available date.
See
EM1981+ for
guidance on how to deal with an application for a closure notice
depending on the stage of the enquiry at which it is made.
An application for a closure notice may be made following the
issue of
If the taxpayer makes an application in response to the issue of
any of these you should explain the rights of appeal which the
taxpayer has. An application for a closure notice may be received
following a HMRC determination of tax liability in respect of
earlier or later years. You should explain that there is no right
of appeal against such a determination. If the taxpayer persists in
the application you should arrange for it to be referred to the
Commissioners at the earliest opportunity and prepare to contest
it.
The application is heard and determined as if it was an
appeal. The Commissioners must give a direction unless they are
satisfied that there are reasonable grounds for not issuing a
closure notice and, where they do give a direction, they will
always give a time limit within which the notice must be issued.
This puts the onus on you to show why you should be allowed to
continue with your enquiries (See EM5620).
The legislation does not give the Commissioners the right to
accept the self assessment as returned or to suggest any amendment
to it. The Commissioners should not express any view as to the
completeness or otherwise of the return or quantify any figure to
be included in the self assessment. They should simply, if they
consider it appropriate, instruct the officer to complete the
enquiry by a specified date.
Both the taxpayer and HMRC have the right to appeal to the
Courts if they are dissatisfied with the Commissioners’
decision as being wrong in law (see AH1500).
