COM101100 - Penalties: penalty determinations: penalty inhibition signals
This subject is presented as follows
Inhibit automatic penalty output
No penalty required
Inhibit automatic penalty output
COTAX can automatically set an ‘Inhibit Penalty' signal for any AP. You can also set the signal to prevent the automatic issue of
- Filing reminders
- Notices of penalty determination
The purpose of the signal is to stop the issue of penalty output to companies or their agents whilst the company's liability to penalties is not clear. (For example, when it appears that the AP record may be incorrect.)
COTAX will automatically set the signal
- When an e-filed return is shown as ‘Not allocated’ or a paper return is mismatched. (For more information see section ‘Return Handling’ (COM132000) in the ‘Returns And Notices’ business area) It unsets this signal when you log receipt of the next return
- On the superseding AP when you supersede an AP for which you have already issued a penalty determination. (For more information see subject ‘Superseded Accounting Periods’ (COM101140))
- In Group Payment Cases, 18 months after the end of the AP (that is at the TR1 point)
When you want to set the Inhibit Penalty signal manually use Function MPEN (Maintain Penalty Signals). You will need to set the signal when
- You are considering a claim that might result in notifying a deferred filing date (Word 38kb) to COTAX. (For more information see subject 'Reasonable Excuse' (COM100100) in section ‘Late Delivery Of Returns’)
- There are other circumstances where you wish to temporarily suspend the issue of penalty output
You can also use Function MPEN at any time to unset this signal for any AP. The signal will be effective when any of the conditions mentioned above are present for the AP.
All the indicators need to be unset to start the issue of automatic output.
No penalty required
You can also use Function MPEN to set or unset the No Penalty Required Indicator for an AP.
COTAX makes no more penalty determinations for the AP when you set the indicator, but it will not automatically cancel any existing charges.
When you receive an appeal against a penalty determination and decide that the penalty is not due you can
- Use Function PPEN (Prepare Penalty Determination) to reduce the determination to nil
You can also set the No Penalty Required Indicator for
- CTSA APs in Function RAMA (Record / Amend Assessment) if penalties are due
- CT Pay and File APs in Function SRTN (Screen Return)
For a list of functions to use in particular situations, see COM101031.
