PAYE95080 - Reconcile individual: HMRC delay: ESC A19: reasonable belief
For tax to be given up the ‘reasonable belief’ test must be satisfied. This test should be considered by the Authorising Officer who receives the submission.
Submitting Officer
The Submitting Officer should provide as much relevant detail about the taxpayers background as possible. This includes
- Copies of all correspondence
- Notes of telephone conversation
- Notes of interview
- Full taxpayer record and historical notes
Any open points should be explored. For example, if the taxpayer claims they couldn’t attend to their tax affairs because of ‘personal problems’, the Submitting Officer should
- Clarify the nature of those problems
- Consider whether they sufficiently distracted the taxpayer
This information will be evaluated by the Authorising Officer in making a fully informed decision.
Authorising Officer
The Authorising Officer should review the case and consider all factors in reaching a decision.
The important point to remember is
- Not whether the taxpayer ‘believed’ their tax affairs were in order
But
- Whether it was reasonable for them to ‘hold the belief’ that they were
It is mandatory for the Authorising officer to record the reason(s) which support giving up collection of the tax arrears or the reason(s) why the concession cannot apply. These should be recorded in Section C of the ESC A19 Stencil (PAYE95025).
- Inform the taxpayer of the decision made by referral to the Mandatory notes made in the stencil
The aim is to reach a common-sense decision using all the known facts and consideration of the taxpayer’s circumstances. If there are insufficient facts, then the Authorising Officer should send the submission back to the Submitting Officer with further instructions to obtain them.
