VCM14100 | Venture Capital Schemes Manual: the Enterprise Investment Scheme: income tax relief: company procedures: compliance statement: HMRC refusal to authorise issue of compliance certificates EIS3

ITA07/S206

After reviewing the compliance statement EIS1(VCS) form(see VCM14020 to access the form), any additional information requested from the company, HMRC decides that not everything on the form EIS1(VCS) is correct, a formal refusal to authorise the issue of certificates to the investors will be sent. The refusal will normally be in the following form.

‘The company’s statement on form EIS1(VCS) relating to the share issue made on [date] and dated [date form signed] has been duly considered and I hereby give notice of my decision as follows:

Authority under Section 204(3) of the Income Tax Act 2007 (ITA) to issue certificates under Section 204(1) ITA is refused. The grounds of this decision are that the statement is not correct in the following respect[s]: [specify].

If the company does not agree with this decision it may appeal against it. Written notice of any appeal should be given to me within 30 days from the date of this notice.

If you appeal I will consider any further information you send me and try to reach agreement with you. If we cannot agree, you can

* ask for my decision to be reviewed by an HMRC officer not previously involved in the matter, or

* notify your appeal to an independent tribunal

If you opt for a review you can still notify your appeal to the tribunal after the review has finished.’