TaxPersonal Tax9 DECEMBER 1999 SELF ASSESSMENT ENQUIRY PROCEDURES TO BE REVIEWED

9 DECEMBER 1999 SELF ASSESSMENT ENQUIRY PROCEDURES TO BE REVIEWED

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.

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.

DETAILS

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
Faster working
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

Barry Jefferies
Inland Revenue Compliance Division (Technical)
Apsley House
Wellington Road North
Stockport
SK4 1EZ

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.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter