SALF401 - Enquiries into Tax Returns: Outline

SALF402 Introduction

Outline of enquiry powers under Self Assessment

SALF403 Power to enquire into tax returns

HMRC is entitled to enquire into any tax return

Section 9A(1)

Conditions for making enquiry: Taxpayer must be notified

Time limits for notice of enquiry

Section 9A(2) & (6)

SALF404 Some notes on HMRC enquiries

Correction and enquiries

Enquiries comprise a mixture of selected audits and random audits

Extent of enquiries

Time limits for commencement of enquiries

Time limits for enquiries following an amendment

Section 9A(2)(c) & (5)

Enquiries after time limit for notice of enquiry has elapsed

SALF405 Enquiry procedures

Amendment of return by taxpayer during enquiry

Section 9B

Power to call for information for purposes of enquiries

Section 19A(1) & (2)

Formal notice may be given requesting documents, accounts or particulars

Section 19A(2)

The taxpayer is given at least 30 days to comply with the request

Limits on the information and documents that may be requested

Section 19A(2)(a)

Section 19A(2)(b)

Section 19A(5)

Nature and amount of information that may be requested

Compliance with request for documents or information

Section 19A(3)

Section 19A(4)

Appeals against requests for documents, accounts or particulars

Section 19A(6) to (11)

Failure to comply with a notice requesting documents accounts or particulars

Section 97AA

Section 97AA(1)

Section 97AA(2) & (3)

Section 97AA(4)

SALF406 Referrals to Special Commissioners during an enquiry

HMRC and the taxpayer can jointly refer an issue that is the subject of an open enquiry for determination by the Special Commissioners during the enquiry

Sections 28ZA to 28ZE

SALF407 Settlement of an enquiry

An officer of the Board issues a formal closure notice stating that an enquiry is complete

Section 28A(1)

Section 9B

HMRC amendments during the course of an enquiry

Section 9C

Application for direction that the enquiry is complete

Section 28A(4) (5) & (6)

Appeals against HMRC amendments

Sections 31(1)(b) & 31A

Sections 31(1)(a) and 31(2)

Settlements of enquiries by agreement, including contract settlements

SALF407A - Enquiries into Tax Returns: Consequential Claims

Where a return is amended certain claims may be made that would normally be out of time

Section 43C

Return amended following fraudulent or negligent conduct

Sections 43C(1), 36(3) and 43(2)

Return amended - no fraudulent or negligent conduct

Sections 43C(2), 43(2), 43A and 43B

SALF408 Penalties for incorrect tax returns

Sections 95 and 99

SALF409 Discovery assessments

Discovery assessments

Section 29

General circumstances in which discovery assessments can be made

Section 29(1)

Section 30(1B)

Restrictions on right to make discovery assessments where a self assessment has already been made for the relevant period

Section 29(2)

Section 29(3) to (5)

Definition of ‘made available’

Section 29(6) & (7)

SALF410 Procedures for making HMRC assessments

Section 30A

SALF411 Time limits for discovery assessments

Section 34(1)

Section 36(1)

Payment of tax

Section 59B(6)

SALF412 Appeals

Appeals that relevant conditions for discovery assessment do not apply

Section 29(8)

SALF413 Interest, surcharges and penalties