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Reviews |
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Asking for a review TM ¶9932 Revenue and Customs advise that they want to encourage negotiation and arbitration with taxpayers to reduce the number of cases which appear at tribunal and to encourage reaching a settlement. As part of this approach, the new regime for dealing with tax administration gives taxpayers the opportunity to ask Revenue and Customs for a review of their decisions, prior to the commencement of appeal proceedings. Although a similar request previously existed in cases of indirect tax, the right is now statutory and extended across all taxes and in all cases with one exception. There is an exception to the right to take up a review offer where the decision is in connection with the new powers for Revenue and Customs to request information about a taxpayer’s affairs or to inspect records.
A review will be carried out by a member of Revenue and Customs unconnected with the original decision. Although the offer and review request must be made prior to an appeal to the tribunal, making a request does not prevent a subsequent appeal to the tribunal, if the taxpayer does not agree with the decision following the review. Time limits TM ¶9934 If a review is offered by Revenue and Customs, the taxpayer has 30 days to take it up or to appeal to the tribunal. If the review offer is not taken up, and no appeal is made, the original decision will stand. Revenue and Customs may accept a late application for a review if there is a reasonable excuse for the delay and the objection to the original decision is made with a reasonable time of the excuse ceasing to apply.
Once the review offer has been accepted by the taxpayer, Revenue and Customs have 45 days in which to conduct the review and to give their decision, although a longer review period can be agreed between the parties. If decision of the review is not notified to the taxpayer within the 45 day time limit, the original decision is deemed to be confirmed.
Following notification of the outcome of the review, the taxpayer has 30 days in which to consider the outcome. The taxpayer can ▪ accept the decision of the review; or ▪ make an appeal to the tribunal. Transitional provisions TM ¶9924 If a decision has been notified to the taxpayer, but not been appealed prior to 1 April 2009, the right to appeal is to the new tribunal and a review may be requested if the time limit for the appeal has not expired.
If a direct tax decision has been notified and an appeal made to Revenue and Customs prior to 1 April 2009, but the proceedings had not begun before then, the taxpayer can still request a review. If the review is requested on or before 31 March 2010, Revenue and Customs have 90 days in which to do the review.
If a decision has been notified to the taxpayer, an appeal made to Revenue and Customs but not notified to the tribunal before 1 April 2009, there is a possibility of a review (with the extended deadline) and any appeal is to the new tribunal.
If a decision has been notified to the taxpayer, appealed and notified to the tribunal prior to 1 April 2009, there is no possibility of a review and the case continues either before the first-tier or upper-tier tribunal. In this circumstance, the tribunal can give directions to deal with the matter either under the old or new rules. In addition, costs are only available if they were available under the old rules, but the advantage for indirect tax cases is that the Sheldon doctrine continues to apply (so no costs are recovered from the taxpayer by Revenue and Customs). |
