COM71010 - Enquiries: CTSA enquiries: opening an enquiry

You must follow the guidance in the Enquiry Manual at EM1500 onwards when opening an enquiry into a company tax return.

You must give the company written notice of intention to enquire (the ‘enquiry notice’).

The notice must be issued on or before the last date for enquiry (COM71005).

If the enquiry results from an amendment to the return, the scope of the enquiry is limited to matters relating to or affected by that amendment unless we are still within the time limit to enquire into the original return. (Para 25(2).)

Otherwise, an enquiry into a return can extend to anything in the return, or anything required to be contained in the return. (Para 25(1) Sch 18 FA 1998.)

Importantly, you do not have to, and should not, give reasons for dissatisfaction with the return.

You cannot open an enquiry if you have already opened and closed an enquiry into that return and have received no new amendment. You may still be able to make a Discovery Assessment (Word 28KB) or determination for that period. (Para 24(5) and Para 41 Sch 18 FA 1998.)

There is a similar right to enquire into any claim not included in a return, that is, made outside a return. (Para 5 Schedule 1A TMA 1970.) But if we have issued a notice to deliver a return and a claim can be made as part of a return, that is the only way in which it can be made.

When you issue a notice or intention to enquire into a return you must use the wording given in the Enquiry Manual.

COTAX does not issue the notice of enquiry. You need to do that locally in the form of a letter on the lines set out in EM1551 - EM1552 and EM1554.

If your office does not use CQI or Caseflow to control enquiry cases, you need to tell COTAX that you have started an enquiry by using Function MAPS (Maintain AP Signals) to set the Enquiry In Progress signal (Word 37KB) on the case record.

A notice of intention to enquire is ‘given’ on the date on which it is delivered to the taxpayer. For a notice given by post, this means that you should despatch the notice in sufficient time for it to arrive at the company premises before the time limit expires.

For a list of functions to use in particular situations, see COM71011.

For legislation applying to this subject, see COM71012.