INS10261 - Steps VAS takes
Negotiating proposals: compliance
Reasons for rejection may be
- the absence of full disclosure
- the offer is not optimised (that is, gives creditors the best achievable result) ( INS10167)
- there is no provision for payment of future tax as it arises
- there is an unacceptable compliance history. (Do not reject an acceptable offer because of assumed non-compliance history.)
Always say exactly what these reasons are. But only disclose
confidential history details to a nominee holding office.
‘Non-compliance’ is only appropriate as a reason
when you have positive evidence of
- evasion or dishonesty such as false returns or accounts and these have not been put right
- the debtor deliberately operated a policy of withholding payment of PAYE/ NIC/ VAT and made no effort to arrange payment when some payment would have been possible
- refusal or failure to respond satisfactorily to our reasonable concerns about the proposal
- the contrived insolvency of any business over which the debtor had control or held an interest.
- Look at the facts of each individual case.
- Do not reject a proposal that is otherwise satisfactory because there is evidence of investigation, dishonesty or a trader having been pursued for fraud.
- Look for indications of accidental, rather than deliberate omissions and that non compliance has been put right by
- co-operation and full disclosure by the debtor
- settlement or agreement with an HMRC Inspector of what is due
- and, in some measure, by subsequent compliance.
If you are satisfied that there is something, although small, on which to base some trust or reliance on the debtor
- Accept the proposal provided none of the other elements of serious non-compliance are present and all other acceptance criteria are satisfied.
Indicators of Direct Taxes investigation are
- investigation compliance settlement contract debts
- S88 interest charges
- Network Unit work items, or files received from DMCS Investigation Compliance Unit.
Indirect Taxes Investigation cases may be identified on the R1 screen in VISION. Reliability indicators (R1) are
- Apparently reliable
- Previous revenue conviction or compromise penalty paid
- Doubtful but no need for immediate action
- Combination of 1and 2
- Under active criminal investigation
- Under active civil investigation.
If a former Revenue or Customs investigation is in progress, criminal proceedings are under consideration, or Customs are about to impose Security
- Do not support a VA proposal without first speaking to the investigating officer and your Technical Adviser .
