HMRC asking for 12 year window to raise assessments involving offshore transactions

[Loan Ranger]

No - not a loan based scheme. And there has been NO communication about any liability.

Once HMRC have opened an enquiry, there is no statutory time limit for issuing a closure notice.

I wouldn't have thought any extension to the assessment window would affect you because HMRC only raise an assessment where they've not previously opened an enquiry.

It's either:

s9a enquiry then s28 (1) & (2) closure notice

OR

s29 discovery assessment

[handyandy]

what are the enquiries in relation to? Payments that can be hit by the LC?

No - not a loan based scheme. And there has been NO communication about any liability.

[ChimpMaster]

In my case I have 2 consecutive years where HMRC opened enquiries for tax years in the mid-2000's and said they did not intend to ask me any questions at that time as they were talking to my former employer. I have had no updates or further contact from them in relation to the enquiry(s) but they are still open.

Any thoughts? Ask them to put up or shut up, request tribunal for closure notice or let sleeping dogs lie?

The worst thing is that you will be liable for interest for all the time the enquiries have been open, even though it's HMRC's fault for not communicating with you.

[phil@pmtc]

In my case I have 2 consecutive years where HMRC opened enquiries for tax years in the mid-2000's and said they did not intend to ask me any questions at that time as they were talking to my former employer. I have had no updates or further contact from them in relation to the enquiry(s) but they are still open.

Any thoughts? Ask them to put up or shut up, request tribunal for closure notice or let sleeping dogs lie?

what are the enquiries in relation to? Payments that can be hit by the LC?

[handyandy]

Whilst technically correct, they can’t just drag an enquiry out without good reason and you can apply to tribunal to request a closure notice. The tribunal would then look at what they have done so far and decide whether it’s reasonable to allow them more time. I’d suggest that to convince a tribunal that closure is required then evidence of the ‘dragging out’ would need to be strong. It has happened though so not impossible at all.

In my case I have 2 consecutive years where HMRC opened enquiries for tax years in the mid-2000's and said they did not intend to ask me any questions at that time as they were talking to my former employer. I have had no updates or further contact from them in relation to the enquiry(s) but they are still open.

Any thoughts? Ask them to put up or shut up, request tribunal for closure notice or let sleeping dogs lie?

[phil@pmtc]

Others will be more qualified to go into more detail, but I believe a closure notice is required to bring the enquiry to an end. But you are correct, as history seems to show HMRC hold all the cards and drag it out.

Whilst technically correct, they can’t just drag an enquiry out without good reason and you can apply to tribunal to request a closure notice. The tribunal would then look at what they have done so far and decide whether it’s reasonable to allow them more time. I’d suggest that to convince a tribunal that closure is required then evidence of the ‘dragging out’ would need to be strong. It has happened though so not impossible at all.

[regron]

Others will be more qualified to go into more detail, but I believe a closure notice is required to bring the enquiry to an end. But you are correct, as history seems to show HMRC hold all the cards and drag it out.

[handyandy]

Well that's a nice 'Get out of Jail Free' card for HMRC, which will cover them for sitting on scheme enquiries for the last 10+ years already !!!!

Otherwise known as 'Covering your tracks !!'

Thanks for posting - very interesting article.

I would like to ask for some clarity though - if HMRC have opened an inquiry on a particular year within the two year limit (ie before 31st January two years after the return for that year in question was submitted) do they have a time limit in which they must conclude the inquiry?

I always assumed that opening the inquiry then allowed them as long as they wanted before making a decision.

[regron]

Well that's a nice 'Get out of Jail Free' card for HMRC, which will cover them for sitting on scheme enquiries for the last 10+ years already !!!!

Otherwise known as 'Covering your tracks !!'

[phil@pmtc]

Currently the time limits are 4 years in general, and 6 years for carelessness.

https://www.accountingweb.co.uk/tax/...rm=Read%20more

Ta for posting, not sure if you’re aware but I’m the author of that article. Managed to sneak in a comment regarding the LC towards the end!
For the main topic - Clearly the 12 years required to ‘gather information’ is a crazy time limit.

[Loan Ranger]

Currently the time limits are 4 years in general, and 6 years for carelessness.

https://www.accountingweb.co.uk/tax/...rm=Read%20more