CFM98770 | Interest restriction: administration: enquiry procedure: notice requiring SA amendment to prevent loss of tax during enquiry

TIOPA10/SCH7A/PARA45

It is possible that an HMRC officer may conclude that there may be a loss of tax to the Crown where a company tax return understates a company’s tax liability in respect of a matter under enquiry in an interest restriction enquiry, unless the relevant company tax return is immediately amended. TIOPA10/SCH7A/PARA45 allows the officer to serve a notice in the company to require it to amend its self-assessment. This is analogous to the power under FA98/SCH18/PARA30 (often referred to as the “jeopardy assessment” procedures) in relation to company tax return enquiries.

The notice may be appealed, within 30 days. As in the case of a company tax enquiry, the HMRC review procedure in TMA70/S49A(2) may not be invoked in the event of such a notice.