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HMRC internal manual

Enquiry Manual

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Concluding an Enquiry: SA Legislation: Appeals against Jeopardy or Closure Notices

If your closure notice amends the return because your final figure differs from that included in the jeopardy amendment you may be faced with appeals against either the jeopardy amendment or the closure amendment or both.

Appeal against jeopardy amendment only

If the taxpayer does not appeal against your amendment in the closure notice, or for CTSA subsequent amendments to your closure notice, the return becomes final after 30 days. Where you are left with an appeal against the jeopardy amendment, write to the taxpayer asking them to withdraw their appeal or to confirm that it may be treated as being determined by agreement under TMA70/S54.

If the taxpayer refuses to withdraw the appeal or says no agreement is reached, you should write to the taxpayer and offer them a review. If they do not agree with the conclusions of the review they may notify their appeal to the tribunal. If they do not notify their appeal to the tribunal within 30 days of the review conclusion letter the appeal is treated as settled under TMA70/S54 on the lines of the review conclusion, see ARTG4830.

If the taxpayer notifies the appeal to the tribunal, ask the tribunal to determine it in the amount of the closure amendment. For more detailed information refer to ARTG8000+.

Appeal against closure amendment only

If the taxpayer did not appeal against the jeopardy amendment but appeals against your closure amendment you should proceed with the appeal in the same way as with any appeal against your amendment following an enquiry. You should follow the guidance in ARTG2120+.

From your discussion with the taxpayer during the enquiry you should know whether the taxpayer is happy with the jeopardy amendment figures or is arguing for a different figure. It is possible that the taxpayer feels the figure should be between the jeopardy and the closure amendment figures. If they are arguing for a figure lower than the jeopardy amendment you should put it to the tribunal that no appeal was made against the jeopardy amendment at the time.

Appeal against both jeopardy amendment and closure amendment

Where the taxpayer has appealed against both amendments, invite them to withdraw the appeal against the jeopardy amendment because the return has been superseded by the closure notice. The contentious issues should all be dealt with in the appeal against the closure amendment.

You should try to reach an agreement. If you can agree figures, determine the appeal against your closure amendment by agreement under Section 54.

If you cannot resolve matters and the taxpayer opts for a review but does not agree with the outcome, they may notify their appeals to the tribunal within 30 days of the conclusion of the review. Both appeals should be heard together by the tribunal. At the hearing ask the tribunal to determine the appeal against the jeopardy amendment in the amount of the closure amendment. You should then argue the case for your figures as part of the hearing of the appeal against the closure amendment.

If following the review the taxpayer does not notify their appeals to the tribunal, the appeals are treated a settled under S54 TMA on the lines of the review conclusion.