SDLTM82590 - Compliance: Concluding an enquiry

Closure notices: Closure applications by the purchaser: All required information received

At whatever stage of the enquiry information is received, a decision will have to be made whether

• further information is required before a compliance caseworker can be sure that the land transaction return is correct and complete
• there is sufficient information for the compliance caseworker to form a conclusion about the accuracy of the land transaction return

The conclusion reached will determine the approach to an application for a closure notice to a Tax Tribunal.

There is insufficient information to reach a conclusion

If it is considered that need further information (or a meeting) is required before a compliance caseworker can be sure that the land transaction return is correct and complete, they should, wherever possible, ask the purchaser to produce the information (or attend a meeting) before the Tax Tribunal hearing. If necessary the reason why it is considered relevant for the purpose of checking the purchaser's return should be explained.

It is quite likely that the purchaser will refuse this request because they still feel that there are no grounds for continuing the enquiry. But it is possible that the purchaser or their agent will accept that the compliance caseworker is entitled to continue their enquiry when they understand what information is now needed. The application must still be referred to a Tax Tribunal unless the purchaser or their agent specifically state that they do not intend to pursue it.

At the hearing you the compliance caseworker should seek to show why a direction would not be appropriate by explaining what further information is needed and why it is needed.

There is sufficient information to reach a conclusion

This is likely to be rare in the early stages of an enquiry but it will be increasingly likely as the enquiry progresses.

There will be some cases where there is nothing in the papers examined to indicate any errors or omissions in the land transaction return. In such cases a closure notice should be issued to the purchaser. This may avoid the need for the application to be heard by a Tax Tribunal.

Similarly, it will sometimes be possible to form a firm view of the nature and extent of any errors or omissions on the basis of the examination of the papers. If it is considered that there is no need to make any further enquiries in order to reach a conclusion on the amount which should be included in the land transaction return, a closure notice should be issued. This may avoid an unnecessary hearing by A Tax Tribunal.