COM71050 - Enquiries: CTSA enquiries: appeals against jeopardy amendments

This subject is presented as follows

Background

There can only be one return and self assessment (Word 28KB) for any AP. So every amendment, whether it is a correction notice (Word 27KB), Taxpayer Amendment (Word 30KB), claim, Jeopardy Amendment (Word 29KB), or a Revenue Amendment (Word 30KB), revises the liability for that AP. If there is more than one amendment, the latest amendment displaces the previous one.

Where the company has appealed against a Jeopardy Amendment, the appeal (and any related postponement application) will still be open legally when you issue your Closure Notice (Word 28KB) with Revenue Amendment. This is because Para 30(5) FA 1998 prohibits determination or hearing of the appeal before that date.

The Revenue Amendment will replace the Jeopardy Amendment on COTAX. But the appeal against the Jeopardy Amendment will however remain in existence, even though the liability may have been changed by the Revenue Amendment.

The appeal against the Jeopardy Amendment can be determined

• By agreement
• By the company withdrawing the appeal

• By the Tribunal (Word 34KB) 

Alternatively or in addition, once they have sent an appeal to HMRC the company may either

• Have a review (whether by accepting our offer or by requesting a review) (ARTG4000+)

• Notify the appeal to the Tribunal (ARTG2400+)

For general information on appeals see the Appeals, Reviews and Tribunals Guidance (ARTG) Manual.

It is advisable to ask the company (during the negotiations leading up to the issue of the Closure Notice) to agree that the appeal against the Jeopardy Amendment can be withdrawn or settled by agreement under Section 54 TMA 1970 when the Revenue Amendment is recorded. The company should confirm its agreement in writing.

If the company agrees

• You can use Function RAMA (Record / Amend Assessment) screen COT121G to enter a S 54 TMA 1970 agreement message when you issue your Closure Notice with Revenue Amendment

If the company does not agree, the Decision Maker (Word 28KB) should follow the advice in the ARTG Manual.

Do not release any tax postponed for recovery as a result of an appeal against the Jeopardy Amendment until the appeal has been formally determined.

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Closure Notice

You cannot conclude an enquiry into a company tax return by a Jeopardy Amendment, even if the figures subsequently stated in your Closure Notice are identical to those in the Jeopardy Amendment. In order to complete the enquiry you must issue a Closure Notice.

Whether or not the Jeopardy Amendment is under appeal

• Your Closure Notice should follow the standard format (See subject ‘Closing An Enquiry: Non-Contract Settlements’ (COM71090))

You do not need to make any special reference to the Jeopardy Amendment, as the Closure Notice will state the amount of tax which should be included in the return.

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Jeopardy Amendment under Appeal - Revenue Amendment Not Appealed

If the company does not appeal within 30 days of the date of notification of the Revenue Amendment, you will still have to dispose of the appeal against the Jeopardy Amendment.

If the company agrees to withdraw the appeal against the Jeopardy Amendment it can be treated as determined by agreement under Section 54 TMA 1970.

If, exceptionally, the company does not agree the Decision Maker should follow the advice in the ARTG Manual. If the company refers the appeal to the Tribunal, the Business Review Unit should seek determination in the amount of the Revenue Amendment

Do not release any tax postponed for recovery as a result of an appeal against the Jeopardy Amendment until the appeal has been formally determined

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Jeopardy Amendment under Appeal - Revenue Amendment Appealed

If a Revenue Amendment is made, whether automatically by COTAX or manually with Function RAMA, and the company appeals it, you will have to dispose of the appeals against the Jeopardy Amendment and the Revenue Amendment. If you cannot reach agreement, the Decision Maker should follow the advice in the ARTG Manual.

You should

• Not release any tax postponed for recovery as a result of an appeal against the Jeopardy Amendment until the appeal has been formally determined

Although there are two appeals, the latest amendment displaces the previous one on COTAX. So the figures in the Revenue Amendment to the company’s return will have displaced those in the Jeopardy Amendment to the self assessment.

If the company refers the appeal to the Tribunal, the Business Review Unit should ask the Tribunal to

• First, determine the appeal against the Revenue Amendment
• Then, determine the appeal against the Jeopardy Amendment in the same figures

If necessary the Business Review Unit may need to explain that this is essentially an administrative procedure to dispose of the appeal against the Jeopardy Amendment and to give the company finality for the return period.

For a list of forms relevant to this subject, see COM71021.

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

For legislation applying to this subject, see COM71012.