PRT Compliance: Joint Venture Claims - Confidentiality
The risk status will determine how claims are treated (see OT18570). Other participators will benefit from the good systems and controls that back up the Low Risk status of the Responsible Person. But a field’s Schedule 5 claims may be subject to more enquiries if the status of the Responsible Person is not Low Risk.
There may be a worry concerning confidentiality in relation to the risk status of the Responsible Person. In reality their risk position is unlikely to be so obvious:
- We will not necessarily raise enquiries on an entity which is not Low Risk
- Enquiries may result from mandatory work, projects or risk campaigns
- Reviews of accounting systems may be necessary either as risk assessment or as a preliminary to agreeing low risk status.
We would expect the Responsible Person to give some indication to co-participators as to the level of enquiries that may be expected, for whatever reason, e.g. if systems and controls are still evolving. However a Responsible Person may see this as an issue and HMRC will need to discuss with them how to manage the situation.