The Cotter Case

The Cotter Case

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Has anyone felt the backlash of the Cotter case?

A client had a loss in 11/12 to be carried back to 10/11 and relevant entries made on 10/11 Tax Return.

HMRC refused to allow significant credit on SA statement and withheld refund.

HMRC have now issued a penalty notice for late payment of tax for 10/11 despite not having finalised an enqiury into the 10/11 Tax Return. 

This all seems to have come about following the Cotter case.

I'm confused! 

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By Paul Soper
12th Dec 2013 22:05

Cotter?

Cotter was a case based on the premise that the loss was not included in the original self assessment return and so left the revenue to recalculate the tax due, they were not obliged to do so where they felt that the relief was not available and so could persue Cotter for the tax due.  You state that the relief for the loss was claimed in the 2010/11 return which takes it, as far as I can see, out of Cotter.  However is the loss one derived from what HMRC might see as an abusive scheme?  If so bear in minfd that HMRC have the power to amend a self assessment at any time during the investigation but a taxpayer only has the right toamend the self assessment when the investigation is concluded even though a claim to do so may be made during the investigation.  They are protecting their backs methinks, rather than pursuing a Cotter type enforcement of liability.

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By seawych
13th Dec 2013 00:08

appeal the penalty

If you win the case it'll go away

If you don't that's life!

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