COM10100 - Appeals: handling appeals and postponements: penalty determinations - appeals
This subject is presented as follows
Common grounds of appeal
Postal delays
Output
Suspensions
Common grounds of appeal
A company may appeal against a penalty determination on one of the following grounds, but the list is not exhaustive
- It delivered the return after the standard filing date (Word 42KB) but before a revised filing date calculated by reference to Para 14(1)(b) or (c) FA 1998. For more information see subject ’Revised Filing Dates’ (COM130210) in the ‘Returns And Notices’ business area
- It claims that the automatic issue of a CTSA late-filing penalty relates to an AP which forms part of a longer period of account, therefore the filing date of the AP should be revised. For more information see ‘Penalty Determinations - Appeals, Action Guide’ (COM10104)
- It delivered the return after the standard or revised filing date but before the date allowed for delivery of its statutory accounts for the return period. For more information see section ‘Late Delivery Of Returns’ (COM100000) in the ‘Penalties’ business area
- It is not required to deliver a return in response to the notice. This can happen only when the period specified in the Notice to Deliver (Word 29KB) is less than 12 months. For more information see the ‘Returns And Notices’ business area
- It has a reasonable excuse for the late delivery of its return. For more information see section ‘Late Delivery Of Returns’ (COM100000) in the ‘Penalties’ business area
- It claims that the amount of tax unpaid on which a Tax-related (Word 30KB) penalty is based is incorrect. For more information see section ‘Late Delivery Of Returns’ in the ‘Penalties’ business area
Notes:
| 1. | The postponement provisions do not apply to appeals against penalty determinations. When you enter the details of an appeal against a penalty determination COTAX automatically stands over all of the penalty that is unpaid |
| 2. | Once you have accepted the appeal and the penalty charge has been stoodover, you must identify a case owner to actively manage it. See COM10120 for further guidance on this subject |
| 3. | You cannot mitigate a penalty for the late filing of a return. If the penalty is due, having regard to all the circumstances of the case, then you charge the penalty in full, in accordance with the relevant legislation. See the Company Taxation Manual (CTM) at CTM94010 |
Postal delays
Very few companies are exempt from mandatory e-filing of their returns. Where you have agreed that a company is exempt, it has to deliver its return not later than the filing date. It is not sufficient merely to post it before that date.
Before 1 April 2011, there was a concessionary period allowed by Extra Statutory Concession ESC / B45 and ESC / B46 (Word 29KB) to ensure that a return posted in time to reach the responsible office by the filing date would escape a penalty. That concession ceased to exist when e-filing became mandatory.
Where, exceptionally, a company appeals against a penalty on the grounds of a postal delay, you should only allow a reasonable excuse claim if you are satisfied that the return was posted, either
- By second class post, at least four working days before the statutory filing date
Or
- By first class post at least two working days before the statutory filing date
Output
COTAX automatically issues a form 64-4(Ack) to confirm that the appeal has been received when you record an appeal in Function HAPP (Handle Appeal).
On the final screen of Function HAPP COTAX gives you the option of sending the form to
- The company
- The agent
Or
- Inhibiting the output
Note: You can only send appeal output to an agent when
- The agent’s details are recorded on the company’s COTAX record
And
- The 64-8 received signal has been set
Suspensions
Where Accounts Office or the Debt Management office record a suspension in potential appeal cases, you will be sent the appropriate correspondence along with form
- AOC385 from Accounts Office (Cumbernauld)
Or
- C52D from the Debt Management office
For a list of forms relevant to this subject, see COM10101.
For a list of functions to use in particular situations, see COM10102.
For legislation applying to this subject, see COM10103.
