Any question arising in connection with the subject matter of an
enquiry into a taxpayer's return may be referred to the Special
Commissioners for determination at any time from the day on which
an officer of Revenue & Customs gave notice of enquiry into the
return until the day on which the enquiry is completed
(TMA70/S28ZA(1)).
The question or questions referred must be relevant to the
subject matter of the enquiry and the referral :
More than one referral can be made during an enquiry.
Applications have to be jointly made and we can refuse to
join in on an application that the customer wants to make. The
customer has no right of appeal against such a refusal.
If an agent is acting you can proceed with them on behalf of
the taxpayer.
Section 28ZB TMA allows either party (the officer of Revenue
& Customs or the taxpayer) to withdraw the notice of referral
before the first hearing by the Special Commissioners. The
withdrawal must be in writing to both the other party and to the
Special Commissioners.
Once a notice of referral has been given an enquiry cannot be
closed until the question referred is finally determined
(TMA70/S28ZD). You cannot issue a closure notice for your enquiry
until the referral has been withdrawn or determined by the Special
Commissioners and either the time allowed for any appeal has passed
or all subsequent appeals have been determined. The customer cannot
apply to the Commissioners for a direction requiring you to issue a
closure notice within a specified period.
The determination of a question by the Special Commissioners
is binding on the parties to the referral in the same way, and to
the same extent, as a decision on a preliminary issue in an appeal.
Any appeal against the enquiry conclusion or amendment cannot
re-open a referred question that has been determined.
More than one notice of referral may be given in relation to
an enquiry.
Unless the Special Commissioners direct otherwise any
subsequent appeal against a jeopardy amendment or against an
amendment of the return on completion of the enquiry shall be to
the Special Commissioners even if the notice of referral was
withdrawn (TMA70/S31C(1)).
The procedures for the hearing of a referral by the Special
Commissioners are the same as for the hearing of an appeal (see
AH1620). An appeal may be made against the decision of the Special
Commissioners on a point of law. In England and Wales the appeal is
to the High Court and in Northern Ireland to the Court of Appeal
.(TMA70/S58(2B)).
