CCM14510 - Closing the Enquiry: SA and TC Enquiries: Failure to negotiate a settlement/formal proceedings

If you are unable to negotiate settlement with the taxpayer / claimant, you will need to:

• consider formal proceedings, and
• formally close the SA and Tax Credits enquiries.

You should follow the normal and separate routes for closing the case.

However because SA impacts on Tax Credits, you will have to consider the closure of SA carefully. We will be unable to close the Tax Credits enquiry until the SA enquiry is finalised. It is possible the taxpayer / claimant will return to the negotiating table and agree the adjustments to the SA return. The adjustment to the Tax Credit award will then follow this figure.

If agreement can’t be reached regarding the SA return the Enquiry officer will have to issue a closure notice and be prepared to defend any appeal before the the First-tier Tribunal - Tax Chamber (prior to 1 April 2009 this was the General Commissioners). Once the figures for the SA return are final the Tax Credit enquiry can be closed using the same figures. If there is an appeal against this decision it will have to be defended at an Appeal Tribunal.