SDLTM81410 - Compliance: Working an enquiry

General approach

Although the powers at FA03/SCH10/PARA12 give a compliance caseworker the opportunity to establish facts for themselves, the purchaser should not be denied the opportunity to disclose any errors and take an active part in quantifying them.

An enquiry will usually be opened in a neutral way by simply asking for the information required without challenging the accuracy of the land transaction return or issuing an invitation to the purchaser to make disclosure beyond that included in the Code of Practice. See SDLTM80870.

Once the initial request for information has been met it may be concluded that there are grounds for doubting the accuracy of the land transaction return or at least matters that will need further detailed enquiry.

Where it is suspected that there is a possibility of irregularities the compliance caseworker will need to consider how to give the purchaser the opportunity to disclose irregularities and co-operate actively in quantifying them. Not only will this affect the degree of abatement of any penalties, it may also reduce the amount of time and effort needed to be put into the enquiry.

Where there are doubts about the accuracy of the land transaction return on the basis of the initial information requested, it is generally appropriate to discuss them with the purchaser or their agent at a meeting, or by telephone, at the earliest opportunity.

Although when the case was opened the reasons for selecting it for enquiry were not given, there is no objection to the discussion of the grounds for concern with the return at this later stage. It will be sensible to do so and may preclude an application to a Tax Tribunal for a closure notice.

The compliance caseworker should be as open as possible in explaining their grounds for concern at this stage.

How the question of inviting the purchaser to disclose any irregularities is approached will depend on the circumstances of the particular case.