SDLTM82970 - Compliance: Concluding an enquiry

Non-contract settlements

Where a compliance caseworker is unable to agree amounts, they will need to conclude matters formally.

Interest

Normal interest rules will apply. See SDLTM85900.

Penalties

Where you consider that the omissions are culpable you should refer to the penalty determinations guidance. See SDLTM86100.

Collection

When an enquiry is settled by way of assessment rather than by contract, the local Recovery Office should be advised of any possible collection difficulties and any general payment on account to be set against the final liability.

The time to use formal powers is a matter of judgement and often it is sufficient to draw them to the purchaser's attention. When a compliance caseworker reaches the stage of considering the use of the formal powers they should review their enquiry to decide whether

• the information being called for is necessary to arrive at a reasonable assessment
• the case is likely to be worth formal action in terms of eventual settlement
• it would be better to draw the case to a close by issuing a closure notice or listing an appeal before a Tax Tribunal for them to determine an assessment on the basis of the information held

In reaching a decision the effect of premature determination of an assessment based on very little evidence should be balanced against prolonging the investigation to obtain information which may not be significant. A compliance manager should be involved in making this decision.

On occasion a compliance caseworker may, depending on whether one or more land transaction returns are under enquiry, find that they could have open appeals against combinations of

• the issue of a FA03/SCH10/PARA14 notice
• HM Revenue & Customs closure notices
• the refusal of a postponement application for a jeopardy amendment and against the jeopardy amendment itself
• discovery assessments and postponement applications

How these are dealt with will depend upon the precise details of the enquiry, but at all times the compliance caseworker should seek to minimise the number of formal proceedings they initiate in order to deal with the enquiry as efficiently as possible.