FHDDS32410 - Approval, revoking the approval and variations: approval – Rejecting an application for approval
The Finance Act (No.2) 2018, section 49 provides the legal provisions to allow us to reject (or revoke) a business’s approval, provided we have good reason to believe the business does not meet our fit and proper tests. You must base a decision to reject an application on solid evidence that will support the decision made if it is tested at a tribunal hearing.
Your evidence must show that, on the balance of probability:
- the fulfilment business is not a ‘fit and proper’ person to hold an FHDDS approval
- that there is, or would be, a significant risk to the revenue; or
- that any of the requirements stated within this guidance (or FHDDS Notice XXX) have not been satisfactorily met.
Your decision should be based on the suitability of the business and its key officials and guiding minds. The credibility of the business should be a key factor in that decision.
As the assurance officer, you are the ‘decision maker’ in terms of granting or rejecting approval and are responsible for drafting the reasons for rejection in the rejection letter. Stating all the grounds for rejection is vital as the applicant must know exactly why approval has been rejected.
Where grounds for rejection (or revocation) are identified, you should agree with your line manager (at least Senior Officer level (SO) is recommended) before taking the appropriate action.
Letter templates can be found on SEES / Forms + Letters / Selected Categories / Local Compliance / +CITEX / Fulfilment House Due Diligence Scheme.