On review of a decision under TMA 1970 s 49E HMRC’s review officer reduced an assessment imposed on my client by 30%. The original officer then ‘cancelled’ that decision by issuing a fresh assessment for the additional 30% that had been cancelled. Can HMRC override its own statutory review decisions in this way?
In short no. Statistics (HMRC’s reviews and appeals: 2013/14 see bit.ly/3zbz5sA) suggest that statutory reviews can be fruitful for the taxpayer – but only in penalty appeals as opposed to substantive cases that call for an in-depth analysis of a complex technical issue. In the latter case the review officer is unlikely to disagree with HMRC’s original stated position. (Note: all statutory references below are to TMA 1970.)
The robustness of the independent review process came under scrutiny in the relatively recent case of McMillan v...
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