AHP6700 | Enquiry Process: talking to Customers and their advisers

A key question in an avoidance enquiry is at what point we put our conclusions and arguments to the customer and their advisers. In all instances you should speak to the C-A Behaviour Change Team about how you can utilise Customer Insights to bring about settlement.

Determining when this should be done is a matter for the TL in consultation with P&POs and other specialists on the project team. We should not, however, put our arguments in a way that could be construed as a closure notice. We often come under pressure to state why we believe a scheme does not work at an early stage in the enquiry. While we can outline the area of law that we are considering, for example an unallowable purpose test or a targeted anti-avoidance rule, we should not be committing ourselves to a particular line in the absence of the facts surrounding the arrangements.

In all cases (other than where there are strong grounds agreed by stakeholders for departing from this) the arguments should be explored with the customer/advisor before GW2 so that they understand our arguments and have commented and we understand theirs and can explain precisely how and why we disagree with them.

Exposing our arguments in this way - whether in correspondence or face to face with the customers/advisers - enables us to get an understanding of the line that they will take in defence of their position. If the approved settlement strategy involves litigation any report we make to our solicitors and counsel will benefit from having the counter arguments exposed.