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Where Taxpayers and Advisers Meet

One for the investigative experts (time limits)

Generix
Posts: 2532
Joined: Wed Aug 06, 2008 3:41 pm

One for the investigative experts (time limits)

Postby Generix » Mon Apr 14, 2014 4:48 pm

Got a time limit related one:

Relating to a Customs Duty assessment (c18); very close to the deadline this one;

In calculating the time limit for raising of an assessment, do you take into account any 'post' days?

Let me give you an example in Germany if the authorities were to issue an assessment by post on the 1st, the assessment would be valid from the 4th (i.e. postal day +3) in terms of when it was notified to you.

Does anyone know if the same applies in the UK for Customs penalties?

Thanks in advance if anyone knows :)
Do you adore to transfer your artistic and inventive qualities to renovate a part type? Perhaps your friends who tour your sanctuary head remarks about want they could levy you to change their premises.

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: One for the investigative experts (time limits)

Postby bd6759 » Mon Apr 14, 2014 9:44 pm

The time limits apply to when an assessment may be made, not to when it is received. As long as the assessment was made within the time limit, it does not matter if you received it after the limit.

wamstax
Posts: 1867
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: One for the investigative experts (time limits)

Postby wamstax » Tue Apr 15, 2014 9:25 am

Postal days only applies in relation to the issue of enquiry notices and their time limits, whereas - as bd6759 rightly says - it is the date that the assessment is made that is the crucial consideration. So where there is any doubt it is best to ask the officer for proof of the assessment having been made within the required time limit.

It is usual for HMRC to keep a watching brief on the need for "protective" or "time limit" assessments but equally can I also mention that it is not unusual for HMRC officers to be deflected from their tasks at the crucial time and they may just miss the important deadline. Of course you then might also have to consider whether there is another time limit that you had overlooked - for example -
NTL assessment - Normal Time limit assessment - within 4 years from the end of the year of assessment or relevant period
Careless Assessment - within 6 years from the end of the year of assessment or relevant period
Deliberate Assessment - within 20 years from the end of the year of assessment or relevant period

Careless and Deliberate mentioned above represent the attitude or behaviour of the taxpayer (or someone acting on his/her/its behalf) that HMRC would have to prove - on the balance of probabilities - in relation to the year of assessment (and/or the tax return) for which they want to make the assessment. So while you might be looking at a NTL period of 4 years don't forget the more difficult option for them that they might feel confident that a 6 or 20 year time limit might apply for errors or omissions from a tax return etc. Of course for the time limit for FTN - Failure to Notify cases i.e. cases where the taxpayer failed to advise HMRC about a source of income in a year of assessment by the 5th October following the year of assessment - is 20 years.

Good investigation management skills have always included managing the making of assessments in good time so as to make settlement that much more secure and easier. Making an assessment within 4 years is and was the easiest option all round but there is nothing to stop an officer relying on a longer period IF they can prove careless or deliberate actions or attitudes to the taxpayers liabilities and can also show that the assessment was MADE within the appropriate time limits..
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

Generix
Posts: 2532
Joined: Wed Aug 06, 2008 3:41 pm

Re: One for the investigative experts (time limits)

Postby Generix » Tue Apr 15, 2014 10:33 am

Thanks guys.

I felt certain the eu customs regs gave vires for it being the receipt of the assessment, maybe it is in fact German national law which strays slightly from the regs then.

Also just a point to raise, I believe for customs errors there is a hard 3 year cap applied except in cases of fraud - and for VAT it is a 4 year cap even in cases of careless errors.

Your time is much appreciated!
Do you adore to transfer your artistic and inventive qualities to renovate a part type? Perhaps your friends who tour your sanctuary head remarks about want they could levy you to change their premises.

wamstax
Posts: 1867
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: One for the investigative experts (time limits)

Postby wamstax » Tue Apr 15, 2014 11:17 am

Oops yes sorry I am a direct tax man LoL but all time limits were supposed to be synchronised

Maybe not and when I get VAT time limits I get out the books
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: One for the investigative experts (time limits)

Postby bd6759 » Thu Apr 17, 2014 9:32 pm



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