COM101130 - Penalties: penalty determinations: review of penalties

This subject is presented as follows

Work list DRNR
Work list PENR 

Work list DRNR

For CTSA APs, work list DRNR (Determination Required No Return List), shows you all the cases in your office where 18 months have passed since the end of the AP, and

  • The filing date for the return has passed

And

  • No return has been received

And

And

  • The company is not in a Group Payment Arrangement

COTAX puts new cases on the appropriate list once a month.

Flat-rate (Word 28kb) penalty determinations will normally have been issued automatically for cases that appear on this work list.

At the end of preparing the Revenue Determination (Word 25kb), you are presented with a choice of actions depending upon the penalty position as recorded by the system.

The options are

  • Allowing the automatic issue of penalties

Or

  • Proceeding to Function PPEN and reviewing the penalty position

Or

  • Setting the ‘No Penalty Required’ indicator

You will normally allow COTAX to automatically issue the tax-related (Word 26kb) penalty determination, which will be issued after 14 days but you may use Function PPEN to do so immediately. Cases are not automatically deleted from the DRNR work list until

  • The Revenue Determination has been issued or you have set the No Determination Required signal
    And
  • You have issued the penalty or set the No Penalty Required signal

Note: COTAX does not recognise that a tax-related penalty has been incurred when the return has not been delivered within 18 months after the end of the AP if

And

  • The company incurs a tax-related penalty earlier than the higher flat-rate penalty of £200. For more information see subject ‘Interaction Of Flat-Rate And Tax-Related Penalties’ (COM100070) in section ‘Late Delivery Of Returns’

The company is liable to both a £100 flat-rate and a 10 % tax-related penalty but COTAX does not identify the tax-related penalty until either

  • The higher flat-rate penalty is incurred

Or

  • The return is received

These cases appear on the DRNR work list as appropriate.

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Work list PENR

The PENR (Penalties Requiring Review List) work list contains cases for which a penalty determination has been made that needs reviewing because one or more of the following have taken place

  • The filing date (Word 38kb) or deferred filing date has changed
  • You log a return after a penalty has been determined with a date of receipt before the filing date
  • You unlog a return for an AP with a penalty determination
  • An assessment has been prepared
  • An AP with a penalty determination has been superseded and requires review
  • A tax related penalty has been set on the record and the Group Payment Arrangement indicator is changed to ‘P’
  • A penalty has been charged and the company is in Administration (not subject to the Enterprise Act 2002) / Receivership

The work list shows

  • The latest penalty incurred
  • The date of receipt of the return
  • The reason for the case being on the list (as described above)

For more information about these work lists and how to deal with cases on them see

  • Section ‘Penalty Work Lists’ (COM102000) in this business area

And

  • ‘Work Lists’ business area

For a list of functions to use in particular situations, see COM101031.

For legislation applying to this subject, see COM101011.

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