In general, tax and penalties for previous transactions can only
be claimed if there has been fraud or negligence. An important part
of the settlement interview involves you establishing culpability
generally and explaining the consequences. See
SDLTM86390+.
It will rarely be necessary, or even desirable, since it may
provoke resistance, to allege fraud. If, however, the mitigation
for seriousness is affected, or it is felt, exceptionally, that it
is necessary to impress on the purchaser the gravity of their
actions and there is clear evidence to support fraud, the matter
should be referred to SCO.
Culpability can be established by the compliance caseworker
explaining briefly to the purchaser the facts which support their
view. If neither the agent nor the purchaser denies the charge it
may be taken as established. The discussion of culpability should
be recorded in the note of interview and identified in any report.
Once culpability has been established the compliance
caseworker can explain its effect on the recoverability of tax,
interest and penalties.
An offer may not be accepted unless the appropriate degree of
culpability on which the settlement depends has been established.
If the purchaser disputes the level of culpability alleged,
but is prepared to make an offer equal, or sufficiently close to,
the standard offer, it can be suggested that they make the offer by
reference to the Stamp Office allegation without admitting any
failure in the letter of offer. If they agree, the wording can be
amended.
A purchaser should be asked for their own proposals for the
wording of the offer where they are prepared to make a satisfactory
offer but will not accept the wording suggested above. Further
guidance can be sought
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
Occasionally, usually in cases where no penalties are claimed
(but a contractual settlement is considered preferable to
settlement by assessment and determination) the purchaser will pay
the amount asked without being prepared to sign any form of offer.
It will normally be possible to devise a letter of
acknowledgement of receipt of the money in a form which will
prevent the purchaser from changing their mind later.
