COM101090 - Penalties: penalty determinations: overpayments

COTAX enables you to access the relevant screen(s) of Function PPEN (Prepare Penalty Determination) whenever you use

• For CTSA APs, Functions
• RAMA (Record / Amend Assessment)
• For CT Pay and File APs, Functions
• PAST (Prepare Full Assessment)
• PASR (Prepare Assessment Based On Return)
• PEST (Prepare Estimated Assessment)

It does this to let you make or amend the necessary penalty determinations, if it recognises that a determination

• Appears to be required but has not yet been made

• Needs revision

• You do not wish it to be automatically issued

• It cannot be automatically issued

Where you issue an assessment or tax determination and a penalty stage has been reached but not charged, you will be presented at the end of the assessing function with a penalty action options box.

The options displayed are

• Auto Issue. If the Auto Issue option is chosen and the case is RLS an advisory message will be displayed “The Determination will not be issued until a new address is obtained”
• Use PPEN

• No Penalty Required

For guidance on how to raise assessments or Revenue determinations see business area ‘Assessing’.

For guidance on how to make Penalty determinations see subject ‘Making Penalty Determinations’ (COM101050) in this section.

Note: COTAX automatically repays any overpaid tax if you

• Create or amend the tax charge

• Make a related penalty determination

It will not reallocate the overpayment against the penalty determination even when they are made on the same day.

This happens every time that a company

• Has made a payment
• Submits its return late

• The tax charge is less than the amount already paid

You need to prevent COTAX from issuing a repayment of tax and a payment application for a penalty. To do this

• Use Function MAPS (Maintain AP Signals) to select ‘Reallocations & Repayments’ from the drop down menu for the Manual Inhibitions field to inhibit repayments and reallocations before creating or amending the tax charge

For more information see section ‘Inhibit Automatic Process’ (COM121000) in the ‘Repayments / Reallocations’ business area.

Remove the inhibition after you have created or amended the tax charge and the penalty determination and COTAX will

• Issue a payment application for any net penalty amount

• Repay any remaining overpaid balance

For a list of functions to use in particular situations, see COM101031.