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HMRC internal manual

Enquiry Manual

Working the Enquiry: Closure Applications: Following Formal Notice Issue

The formal notices which may lead to closure application include

  • an information notice
  • a penalty notice for failure to produce information
  • a jeopardy amendment
  • a determination of tax liability in respect of earlier or later years
  • discovery assessments for earlier years.

If the taxpayer makes an application at any of these points you should explain

  • what rights they have to appeal against the formal notice
  • that they may wish to consider whether Alternative Dispute Resolution (ADR) will help resolve any dispute, and
  • that it would be better to follow these routes rather than pursuing the closure application.

See the ADR web pages for guidance about ADR.

No appeal right exists against a determination and ADR would not be appropriate because the taxpayer can displace the determination by simply submitting the outstanding return.

If however the taxpayer persists in the closure application you should remind them how they can displace the determination. You must also be prepared to contest the closure application and follow the guidance at EM1990 where a direction is given to close the enquiry.