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Where Taxpayers and Advisers Meet

Two investigations into same year

Milbo
Posts:52
Joined:Wed Aug 06, 2008 4:07 pm
Two investigations into same year

Postby Milbo » Tue May 10, 2022 9:06 am

In March 22 we received a CT enquiry re donations from HMRC CCG Central Unit for the year ended 31 Aug 2020. Just over a month later, we received a full enquiry opening letter into the same year, including donations, from HMRC Indv and Small Business Compliance under a different CFSS reference.

I understand that the first enquiry can be extended to include further information requests so was hoping to have the original enquiry closed before having to reply to the second enquiry. Alas HMRC requested further information so I wrote to the second enquiry requesting that theirs be closed as there is already an ongoing case. There reply is "I cannot close the enquiry; I still require everything listed in the schedule (except point 25 donations)."

It doesn't seem correct that there can be two enquiries ongoing at the same time into the same CT Return. Any thoughts?

Many thanks,

Mark

Milbo
Posts:52
Joined:Wed Aug 06, 2008 4:07 pm

Re: Two investigations into same year

Postby Milbo » Tue May 10, 2022 9:42 am

Having looked at this further, this should help:

EM0065 - Introduction: Self Assessment Tax System: Compliance
Broadly you can enquire into a return

by giving written notice to the taxpayer
at any time from receipt of the return until the end of a defined period.
The different types of enquiries undertaken are explained in EM0090+.

Only one notice of enquiry into a return is permitted. You do not have to give reasons for opening an enquiry, but in certain circumstances it may be appropriate to do so.

Your enquiry is closed by written notice setting out your conclusions and any amendments.

All notices relating to Income Tax, Capital Gains Tax or Corporation Tax enquiries must be in writing, see EM0067.

Mark

wamstax
Posts:1964
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Re: Two investigations into same year

Postby wamstax » Tue May 10, 2022 9:58 am

In my view the second notice is invalid as notice of enquiry has already been served. It should be withdrawn and I would suggest that HMRC get their act together.
Until they determine/accept which notice is valid I would not be providing information as you may be doing so voluntarily without your protection of a formal enquiry notice. Hope you have a decent Prof negligence protection if you do otherwise and client complains
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites

wamstax
Posts:1964
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Re: Two investigations into same year

Postby wamstax » Tue May 10, 2022 10:02 am

The above reply is of course on the basis that the first notice was a formal enquiry notice and not just HMRC chancing their arm with a request for information without a formal enquiry notice to see if your client company had a case to answer; which you responded to and gave them the ammunition to open a formal enquiry. I would look carefully at the opening letter again .
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites

Milbo
Posts:52
Joined:Wed Aug 06, 2008 4:07 pm

Re: Two investigations into same year

Postby Milbo » Tue May 10, 2022 10:39 am

Thanks for your input as always Wamstax.

The first enquiry was opened under Para 24(1) Sch 18 FA 1998 so I don't think HMRC can do anything other than close the second enquiry.

We have no intention of providing any of the 51 items requested by HMRC in respect of the second enquiry.

bd6759
Posts:3784
Joined:Sat Feb 01, 2014 3:26 pm

Re: Two investigations into same year

Postby bd6759 » Tue May 10, 2022 10:53 pm

They cannot close the second enquiry because it hasn’t been opened. :D

I’d enthusiastically deal with the first enquiry and get it closed sharpish. That’ll scupper them.

Milbo
Posts:52
Joined:Wed Aug 06, 2008 4:07 pm

Re: Two investigations into same year

Postby Milbo » Thu May 12, 2022 4:14 pm

Thanks both.

The letter requesting the closure of the second enquiry has been sent and I will let you know the outcome.

wamstax
Posts:1964
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Re: Two investigations into same year

Postby wamstax » Thu May 12, 2022 9:18 pm

As I said before the second notice would be invalid and should be withdrawn. The closure procedures for a valid enquiry cannot apply. I wouldn’t entertain any suggestion that an enquiry was opened as this could give the second notice an air of validity that is not appropriate
Don’t like to be pedantic - but I am 😝
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites

robbob
Posts:3221
Joined:Wed Aug 06, 2008 4:01 pm

Re: Two investigations into same year

Postby robbob » Fri May 13, 2022 8:29 am

The letter requesting the closure of the second enquiry has been sent and I will let you know the outcome.
Has the first enquiry been closed yet - you have probably made a msitake if you are asking for second enquiry to be cancelled before the first enquiry has been formally closed - if you go down that roiute hmrc may simply move all the questions from enquiry 2 over to enquiry 1 - well i would presume that would probably happen unless they are too embarrassed.

wamstax
Posts:1964
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Re: Two investigations into same year

Postby wamstax » Fri May 13, 2022 11:23 am

I think it is inevitable that the initial enquiry would be expanded in any case HMRC don’t do embarrassed 😩 It’s probably just the usual left hand right hand cock up.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites


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