DMBM668420 - CCP: Equitable liability - sending cases to EIS
During the course of proceedings, either the court or the
defendant (or the defendant's representative) may suggest that an
estimated assessment is excessive and HMRC should have regard to
the `equitable liability'. That is, the amount that would have been
charged had the necessary information (accounts, etc) been made
available at the proper time.
The strict legal position is that because the assessment is
final and conclusive, there is no entitlement to an adjournment,
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
Before judgment
If you are asked to consider equitable liability
- press for judgment on the grounds of finality
- inform the court and/or defendant that after judgment you will refer the matter to the Commissioners for Her Majesty’s Revenue and Customs for consideration, without prejudice to their legal claim.
If the court decides to adjourn the case ask for a general
adjournment.
Immediately after the hearing, you must send the papers
direct to Enforcement and Insolvency Services with a full report of
the proceedings. The covering memo should be clearly headed `Claim
for Equitable Liability'. Where appropriate, include the date of
any adjourned hearing.
After judgment
Where, following judgment it is suggested that HMRC should have
regard to equitable liability, apply immediately to the court for a
general adjournment. You should suspend any enforcement action.
You must send the papers direct to Enforcement and Insolvency
Services with a full report of the proceedings. The covering memo
should be clearly headed `Claim for Equitable Liability'.
