ECSH91500 - Determination of an appeal prior to a tribunal
Settlement prior to a tribunal听
Appeals may be settled by agreement with the business听at any time before the tribunal has completed its hearing of the appeal, whether or not听there has been a review.听
As Economic Crime -Supervision听(EC-S)听follow the indirect tax appeals route, settlement of appeals by agreement fall听under section 85 of the Value Added Tax Act 1994 (VATA). This听is a legal process,听and the same consequences follow as would have followed had the matter been decided by the tribunal.听
It is therefore very important听that the agreement is carefully worded, in particular that听any limitations to the agreement are clear. The officer听should always consider taking legal and/or specialist advice to make sure that the agreement does not听impact听EC-S decisions and penalties听in later years.听听听
The appeal may be settled if the business agrees with HMRC that the decision should be:听
upheld,听
varied in a particular manner, or听
Cancelled.听
Where the business and HMRC agree that the decision should either be cancelled or varied, e.g.听so that a financial penalty charged is lower, G7 authority for the agreement is required.听
Agreements may be reached orally or in writing. Where an agreement is reached orally the officer听should confirm the agreement by writing to the business.听
If an agreement is made under section 85 VATA, the litigator, review officer or EC-S officer,听as appropriate, should tell the tribunal about the agreement: this finalises the appeal and the tribunal needs to know that such an agreement has been made so they can update their records.听
The business has 30 days from the date of the agreement within which to notify HMRC that they have changed their mind.听
Withdrawal听of an appeal听
A business may tell the Tribunals Service that they wish to withdraw their appeal at any time until the appeal is decided. Whilst this is usually done in writing, it can also be withdrawn orally during the hearing.听
The tribunal will notify the other parties of any withdrawal.听
In First-tier Tribunal cases this rule is subject to the normal rules on settlement of an appeal under section 85 VATA. The rule does not require a settlement to be made before the case can be withdrawn, neither does withdrawal, in itself, constitute听a settlement.听听
The party who withdrew their case can apply to have it reinstated by writing to the tribunal within 28 days (in the case is before the First-tier Tribunal) or 1 Month (if the case is before the Upper Tribunal) of听the date the tribunal received the notification of withdrawal, or听the date of the hearing at which the party said they were withdrawing their case.听
If a party withdraws their case, the effect will be as if the tribunal had decided against their case (or relevant part of it) and had disposed of the proceedings (or relevant part of them). If a business听wishes to withdraw their appeal it will be treated as settled under the relevant legislation unless HMRC objects to its withdrawal within 30 days.听Under such circumstances, the sanction(s) imposed by HMRC would remain valid.听听听
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