COM30080 - Background: company taxation overview: CTSA - similarities to ITSA

Certain key features of CTSA, mirror those of ITSA, as follows

• The return required by a notice to deliver (Word 29KB) must contain the company’s self assessment (Word 28KB), which is final subject to

• • Taxpayer amendment
  • Correction by HMRC

• Formal enquiry by HMRC

• There should usually be no need for assessment by HMRC
• HMRC have nine months from the date the return is delivered to correct any obvious errors in the return
• There is an information power where an enquiry is open which
• Allows HMRC to require production of documents and information, without involving the Tribunal (Word 34KB) 

• Imposes penalties for failure to comply

• The company can ask the Tribunal to order HMRC to close an enquiry
• HMRC has the power to make an assessment (a Discovery Assessment (Word 28KB)) if information comes to light indicating that a self assessment is inadequate as a result of

• Fraudulent or negligent conduct

• Incomplete disclosure

• Discovery assessments are only used when the time limits for opening an enquiry have passed, or an enquiry has already been closed for the AP
• Companies can make claims under error or mistake provisions if they have made an error or mistake in completing the return
• If no return is delivered, HMRC has the power to make a determination of the company’s tax liability. The determination

• Has the same effect as a self assessment, and is not subject to appeal

• If the company then makes a self assessment, it supersedes the determination

For a list of forms relevant to this subject, see COM30071.

For legislation applying to this subject, see COM30021.