EM5621 - Commissioners: A Direction for a Closure Notice is Given

If the Commissioners direct you to complete your enquiry you must notify the taxpayer accordingly within the time limit specified.

If you have no information or you have no grounds for considering that there is anything wrong with the return you may have to issue your closure notice in the amount of the self assessment. Your course of action should be influenced - but not determined - by the views the Commissioners expressed at the hearing of the application. The comments of the Commissioners may, for example, lead you to think that you would have little prospect of sustaining a higher Revenue amendment in any subsequent proceedings before them. But you should also remember that you will have the opportunity at any contentious hearing to develop your arguments more fully, and that any decision they then take may itself be subject to appeal.

If you have some information or an indication that the self assessment may be incorrect you should:

• ask the Commissioners to allow at least 30 days (or a reasonable time) for you to consider the information in your possession
• review any records in your possession
• issue a closure notice in the appropriate figures if you are satisfied you can justify an amendment, and
• follow the procedures for bringing the case to a close.

You should also make an immediate report to your Area Director (Compliance) or Band B Compliance Manager who will decide whether a report should be made see contact link.

Even in cases where we decide to appeal against the Commissioners’ decision we will still have to complete the enquiry within the time limit given. There is no scope for delaying completion simply because a further appeal is to be made.

However, if the Courts overturn the Commissioners’ decision to give a direction then the closure notice will fall as well and you will be able to continue with your enquiries. This should be done as quickly and effectively as possible.

A taxpayer can also appeal to the High Court on a point of law against a Commissioners’ decision not to give a direction

• by way of case stated from a decision of the General Commissioners
• by direct appeal from a decision of the Special Commissioners.

In accordance with the principle that a decision from a tribunal or court is taken to be correct, and to be respected, unless and until it is overturned on appeal, you are entitled to continue with your enquiries pending the taxpayer’s appeal to the Courts. You should therefore proceed with the enquiry in the normal way.

If the taxpayer objects to the continuation of the enquiry on the basis of their pending appeal to the Courts you should explain the Revenue’s view as set out in the preceding paragraph. If the taxpayer continues to refuse to provide information then you should use the appropriate information powers.