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HMRC internal manual

Technical Teams Operational Guidance

From
HM Revenue & Customs
Updated
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Settling the enquiry: agreeing income profit additions: objectives

The key commitments in our Codes of Practice are:

  • we will only suggest adjustments that we consider to be reasonable in the light of the information we hold
  • we will explain the figures we may propose for settling matters.

These commitments mean that whenever we can we should proceed from what the taxpayer has returned or disclosed. We should put ourselves in a position where we can explain the reasonable adjustments we want to make to the taxpayer’s figures and we should try to agree these wherever possible.

Our general objective is to try in all cases to arrive for each year and for all sources at a true figure of income or profit etc. with full deduction given for all reliefs and allowances etc due. The figures of income or profits to be assessed and the resulting unpaid duties should be as near as possible to the additional amount that the taxpayer would have paid if he/she had been honest, prompt and well advised.

These figures must be based on the transactions that actually occurred. We should not permit the taxpayer to disregard the results of poor tax planning or ill-advised avoidance.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)  TTOG5355(This content has been withheld because of exemptions in the Freedom of Information Act 2000)