SAM31045 – Compliance: enquiry work: S12AC enquiries completed (partners SA records) (Action Guide)

When S12AC enquiries into a partnership return are completed update the partners’ SA records by following the instructions in the Enquiry Manual and steps 1 - 11 below. This Action Guide supplements the Enquiry Manual by telling you what SA functions to use on the partners’ SA records.

Additionally, where the enquiry record was set up using CQI Workbench function CREATE ITSA DISCOVERY, refer to the Action Guide ‘Concluding an enquiry: Using ITSA Discovery records' ( SAM31046).

The guide is presented as follows

Notification of partner’s revised share of partnership income	Steps 1 - 2
Update partners’ SA records	Follow the instructions under the heading that fits your partner
Case I or II profits for 1996-97 of a pre 6 April 1994 partnership: open S9A enquiry on partner for the same year as the S12AC enquiry	Step 3
Case I or II profits for 1996-97 of a pre 6 April 1994 partnership: no S9A or closed S9A enquiry on partner for the same year as the S12AC enquiry	Step 4
Other partnership profits / income and Capital Gains: open S9A enquiry on partner for the same year as the S12AC enquiry	Steps 5 - 6
Other partnership profits / income and Capital Gains: no open S9A enquiry on partner for the same year as the S12AC enquiry	Step 7
Review signals and enquiry status	Steps 8 - 11 (go to these steps as directed in the Action Guide)

For details of how to access any of the SA functions, select ‘Index of Functions’ on the left of the screen.

Notification of partner’s revised share of partnership income

1. If you receive a notification from a S12AC Enquiry Officer advising the S12AC enquiry is completed and no change to the partnership statement (so the partner’s share is unaffected)

2. If you receive a notification from a S12AC Enquiry Officer advising the S12AC enquiry is completed and giving details of your partner’s revised share of partnership income

Case I or II profits for 1996-97 of a pre 6 April 1994 partnership: open S9A enquiry on partner for the same year as the S12AC enquiry

3. If additional interest on payments on account for 1997-98 (due to revised Case I or II profits from the pre 6 April 1994 partnership) is not included in a contract settlement ( SAM31060) with the partner in respect of a S9A enquiry

Use Function AMEND RETURN FOR ENQUIRY or CREATE RETURN CHARGE FOR ENQUIRY to make a Revenue amendment ( SAM21020)

Note 1: The amendment has no effect on the partner’s liability for 1996-97 (as it includes a revised credit for notional tax and Class 4 NIC) but it prompts the computer to set up or amend payments on account for 1997-98

Note 2: Additional interest is excluded from the contract settlement where the due date of the contract is 31/01/1999 or earlier or the taxpayer objects to it being included in the contract

Case I or II profits for 1996-97 of a pre 6 April 1994 partnership: no S9A or closed S9A enquiry on partner for the same year as the S12AC enquiry

4. Update the partner’s 1996-97 return details to reflect his / her revised share of Case I or II partnership profits and notional tax / Class 4 NIC by using

Note: The amendment has no effect on the partner’s liability for 1996-97 (as it includes a revised credit for notional tax and Class 4 NIC) but it prompts the computer to set up or amend payments on account for 1997-98

And

Other partnership profits / income and Capital Gains: open S9A enquiry on partner for the same year as the S12AC enquiry

5. If you are negotiating a contract settlement with the partner in respect of a S9A enquiry

And

6. If you do not make a contract settlement with the partner in respect of the S9A enquiry

And

Note:

The revision for the S12AC enquiry is not dependent on the S9A enquiry. This means the Revenue amendment for revised partnership profits / income and Capital Gains can be made when you know that your S9A enquiry will not be finalised by way of a contract settlement. At the same time as making the partnership revision function CREATE SUNDRY CHARGE can be used to enter any tax geared penalty (agreed with or determined following formal penalty action on the nominated partner) in respect of the understated partnership profits / income and Capital Gains.

When writing to the partner to explain the reason for the amendment point out that the penalty has been agreed with, (or determined following formal penalty action on), the nominated partner. Also, advise that interest is accruing on the additional liability and, if paid late, the penalty will be liable to interest.

Include a payslip using the Print Payslip application. Enter the UTR, followed by a K (for example, 8257235884K), in the ‘Reference’ field and complete the other fields as necessary.

Other partnership profits / income and Capital Gains: no open S9A enquiry on partner for the same year as the S12AC enquiry

7. If there is not an open S9A enquiry on the partner
   
   

Note: When writing to the partner to explain the reason for the amendment point out that the penalty has been agreed with (or determined following formal penalty action on) the nominated partner. Also, advise that interest is accruing on the additional liability and, if paid late, the penalty will be liable to interest

Include a payslip using the Print Payslip application. Enter the UTR, followed by a K (for example, 8257235884K), in the ‘Reference’ field and complete the other fields as necessary

Review signals and enquiry status

8. Use function VIEW COMPLIANCE SUMMARY to check the enquiry status for all years
   
   
9. If you made an amendment to the partner’s self assessment which resulted in additional liability becoming due from the partner

10. Except where there is an open S9A or S12AC enquiry for any year

If on using the function you find that Automatic Move status is set to ‘N’ for any other Revenue activity for which your office has active responsibility consider changing it to ‘Y’. You may have to ask another operator in your office to amend the status if you do not have the clerical user role associated with the Revenue activity

Note: The entry in the Automatic Move field is not changed from ‘N’ to ‘Y’ when the settlement date is passed from the CQI Workbench to the partnership SA record

Note: The No Repayment signal is not changed from ‘Y’ to ‘N’ when the settlement date is passed from the CQI Workbench to the partnership SA record

11. If the enquiry status is ‘NONE’ on the partner’s SA record for the year of the S12AC enquiry

Note: Where a S9A enquiry has not been opened for the same year as the S12AC enquiry the computer will have changed the enquiry status on the partner’s SA record from ‘S12AC PRESENT’ to ‘NONE’ when the settlement date is passed from the CQI Workbench to the partnership SA record