COM23090 - Assessing: CTSA assessments: make / amend tax / penalty charges on same day

Whenever you make or amend an assessment using RAMA (Record / Amend Assessment) and your actions affect the penalty position for the specified period (Word 27KB) into which the AP falls, you see a choice of actions at the end of the function, depending upon the penalty position.

The options you see are

  • Allowing the automatic issue of penalties

Or

  • Proceeding to Function PPEN (Prepare Penalty Determination) to issue or revise the penalty determination

Or

  • Setting the ‘No Penalty Required’ indicator

Note: You should normally select the automatic issue of penalties option when it is available to you.

It is important to note that if you make an assessment first and then select the automatic issue of penalties option or use Function PPEN to issue a penalty determination, any overpayment on the assessment will

  • Be repaid automatically

And

  • Not be allocated against any unpaid liability on the penalty determination

This happens even when the penalty determination is made on the same day as the assessment and the company will receive a repayment and an application for payment within a day or two of each other.

You must stop this happening by

  • Using Function MRSC (Maintain Rept / Realloc Signals (Co)) to inhibit automatic reallocations and repayments at company level

This will make sure that COTAX

  • Reallocates the tax overpayment against the penalty charge

And

  • Issues a payment application for the net penalty due

Or

  • Repays any remaining overpaid balance

You must remember to unset the signal after COTAX has dealt with the reallocation so that automatic reallocations and repayments can continue.

Note: If you find that you have

  • Issued an assessment that has caused an overpayment

And

  • Selected automatic issue of a penalty or used PPEN to issue a penalty

But

  • You have forgotten to inhibit repayments and reallocations
    • You can use Function SREP (Stop Repayments) to stop the repayment, but you must do so on the same day

For more information about penalties see the ‘Penalties’ business area.

For a list of functions to use in particular situations, see COM23012.

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