INS6110 - Cotax

Assessments

When a company is insolvent ICHU, or when appropriate, the Recovery Office, may remit the tax charged by an assessment ( INS6110a) using Function RREM (Record Remission).

The computer treats a remission as a payment type posting rather than a reduction in the charge. The posting is shown in Function VPPD (View Payment and Posting Details) as RMM (manual remission posting).

Therefore, if the District Office subsequently reduces the assessment the computer treats the AP as overpaid.

When there is a manual remission posting on the record

The District Office

• Must liaise with the Recovery Office or ICHU as appropriate before reducing any assessment in an insolvency case to make sure the remission is cancelled

The Recovery Office or ICHU as appropriate

• Must cancel the remission before the District Office amends the assessment