COM71051 - Enquiries: CTSA enquiries: appeals against jeopardy amendments (Action Guide)

To dispose of appeals against Jeopardy Amendments at the close of an enquiry in a non-contract settlement case, consider steps 1 - 16 below. The guide is presented as follows

Appeals against Jeopardy Amendments	Steps 1 - 2
Jeopardy Amendment under appeal - Revenue Amendment made	Steps 3 - 8
Jeopardy Amendment under Appeal - Revenue Amendment Not Appealed	Steps 9 - 10
Jeopardy Amendment under Appeal - Revenue Amendment Appealed	Steps 11 - 16

Appeals against Jeopardy Amendments

1.	If there is an open appeal against a Jeopardy Amendment (Word 29KB) you will need to dispose of it
	When you issue your Closure Notice with Revenue Amendment (Word 28KB)
	Note: Although the Jeopardy Amendment will be displaced on COTAX by the Revenue Amendment, the appeal against the Jeopardy Amendment will remain open legally until settled by agreement or determined by the Tribunal (Word 34KB)
	For more information on handling appeals see the ‘Appeals’ Business Area ‘Handling Appeals and Postponements’ (COM10000). For technical guidance on appeals see the Appeals, Reviews and Tribunals Guidance (ARTG) Manual
2.	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up to the issue of the Closure Notice, to agree that the appeal against the Jeopardy Amendment can be treated as withdrawn or settled by agreement under Section 54 TMA 1970 when the Taxpayer or Revenue Amendment is recorded

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Jeopardy Amendment under appeal - Revenue Amendment made

3.	Before you conclude your enquiry and make a Revenue Amendment, the company may not have withdrawn its appeal against the Jeopardy Amendment or agreed to treat it as determined by agreement under Section 54 TMA 1970
	Write to the company asking them to withdraw their appeal against the Jeopardy Amendment or confirm that it may be treated as being determined by agreement under Section 54 TMA 1970
4.	When you use Function RAMA, ‘Prepare a Closure Notice with Rev Amdt’ option, to notify the computer of the closure and Revenue Amendment, you should
	Select ‘Section 54’ in the How was the Appeal Determined? field in screen COT121G
	Select ‘N’ in the Appeal Determination Message Required? Field on screen COT121G. The Notice of amendment to a company tax return - form CT620(AMD) - will be printed without an appeal determination message
5.	On the day that the Revenue Amendment is made
	Use Function MRSC (Maintain Rept / Realloc Signals (Company)) to inhibit reallocations or repayments to or from any AP of the company
6.	On the following day
	Use Function HAPP (Handle Appeal) to informally standover a like amount of tax on the Revenue Amendment as was postponed for recovery on the Jeopardy Amendment (see step 7)
	(See subject ‘Informal Standover in IR Office’ (COM10070) in section ‘Handling Appeals And Postponements’ in the ‘Appeals’ business area, which tells you how to record an informal standover)
	Note: You should informally standover a like amount of tax on the Revenue Amendment until the appeal against the Jeopardy Amendment is settled
7.	If the tax charged by the Revenue Amendment is
	More than or equal to that previously postponed on the Jeopardy Amendment
	Informally standover a like amount of tax on the Revenue Amendment as was postponed on the Jeopardy Amendment
	Less than that previously postponed on the Jeopardy Amendment
	Informally standover all the tax on the Revenue Amendment
8.	Put the file on special BF until the 30 day appeal period from the date of notification of the Revenue Amendment has expired

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Jeopardy Amendment under Appeal - Revenue Amendment Not Appealed

9.	When you make a Revenue Amendment and the company
	Does not appeal the Revenue Amendment within 30 days of the date of notification
	And
	Does not reply, or replies but will not withdraw its appeal against the Jeopardy Amendment
	Follow the advice in ARTG2210+ and ARTG2700+ (if you are the Decision Maker) to settle the appeal against the Jeopardy Amendment
	If the company refers the appeal to the Tribunal, the Business Review Unit should seek determination in the amount of the Revenue Amendment and 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
10.	Once the appeal against the Jeopardy Amendment has been formally determined
	Use Function HAPP to remove the informal standover that you made (at steps 6 & 7 above) on the Revenue Amendment
	(See subject ‘Informal Standover in IR Office’ (COM10070) in section ‘Handling Appeals And Postponements’ in the ‘Appeals’ business area, which tells you how to remove an informal standover)
	Use Function MRSC to uninhibit reallocations or repayments to or from any AP of the company

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Jeopardy Amendment under Appeal - Revenue Amendment Appealed

11.	When you make a Revenue Amendment and the company appeals it, you should
	Use Function HAPP to
	Remove the informal standover that you made (at steps 6 & 7 above) on the Revenue Amendment (see subject ‘Informal Standover In IR Office’ (COM10070) in the ‘Appeals’ business area)
	Record the appeal and any postponement application made against the Revenue Amendment (see subject ‘Assessment Appeals in IR Office’ (COM10050) in the ‘Appeals’ business area)
12.	If the company asks for tax to be postponed on the Revenue Amendment in a greater amount than that previously postponed on the Jeopardy Amendment
	Postpone the tax on the Revenue Amendment
13.	If
	The company asks for tax to be postponed on the Revenue Amendment in a smaller amount than that previously postponed on the Jeopardy Amendment
	And
	The tax charged on the Revenue Amendment is more than or equal to the tax that was charged on the Jeopardy Amendment
	Informally standover further tax so that the total tax postponed plus tax informally stoodover on the Revenue Amendment equals the tax that was postponed on the Jeopardy Amendment
14.	Follow the advice in ARTG2210+ and ARTG2700+ (if you are the Decision Maker) to settle the appeals
	Note: Although there are two appeals in law, 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
15.	If the company refers the appeals 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, explain to the Tribunal 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
16.	Once the appeals have been formally determined
	Use Function HAPP to record the outcome of the appeal against the Revenue Amendment (see subject ‘Determination of Appeal’ (COM10060) in the ‘Appeals’ business area)
	Note: That will include using Function HAPP to remove any informal standover that you made (at step 13 above) on the Revenue Amendment
	(See subject ‘Informal Standover in IR Office’ (COM10070) in section ‘Handling Appeals And Postponements’ in the ‘Appeals’ business area, which tells you how to remove an informal standover)
	Use Function MRSC to uninhibit reallocations or repayments to or from any AP of the company

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