The Inland Revenue is to review its procedures for making enquiries into self assessment tax returns. Revenue officials will look at the impact of the procedures on taxpayers and tax advisers and consider possible improvements, administrative or legislative. Comments from interested parties by 29 February 2000 will be welcome.
1. The review will be concerned with the procedure for enquiries into self assessment returns made for income tax and capital gains tax. It will cover the following topics (though more may be added as it goes on):
Codes of Practice
Letters opening enquiries
Use of the correction power and its link with enquiries
Enquiries limited to particular entries on a return, including capital gains tax enquiries Enquiries into partnerships
Use of formal self assessment information powers
Contract settlements and penalty determinations
Litigating points in dispute
2. As well as considering improvements to the self assessment statutory rules for the 2001 Finance Bill the review will look at changes to departmental procedures, including computer systems, and guidance to staff.
3. Comments on these topics and others relating to self assessment enquiry procedures should be submitted by 29 February 2000 to
Inland Revenue Compliance Division (Technical)
Wellington Road North
4. A questionnaire is being prepared and will be available from Barry Jefferies and on the Inland Revenue’s web-site: http://www.inlandrevenue.gov.uk.
NOTES FOR EDITORS
1. The introduction of self assessment represented a radical change in our system of tax administration. It first applied to tax returns and self assessments for income tax and capital gains tax for the 1996/97 tax year. Over two years have now elapsed since Revenue officers made the first enquiries into self assessment returns to check their correctness.
2. This review will be the first opportunity to take a considered look at how the enquiry procedures are working in practice.