Commentary

V5.139 Information to be shown on a notice of VAT assessment

Part V5 Compliance, enforcement and appeals

V5.139 Information to be shown on a notice of VAT assessment

V5.139 Information to be shown on a notice of VAT assessment

The legislation requires the amount assessed to be notified to the person concerned but is silent on the manner in which this must be done. The principle to be applied is that a 'taxpayer is entitled to be informed in reasonably clear terms of the effect of the assessment'1. The courts appear to have accepted2 that the following constituted the minimum requirements which must be contained in a notification:

  1.  

    •     the name of the taxpayer

  2.  

    •     the amount of tax due

  3.  

    •     the reason for the assessment, and

  4.  

    •     the period of time to which it relates

From the decided cases, it appears that incomplete information on the following matters may affect the validity of notification of an assessment.

Date when the VAT assessment is made

The legislation does not require a notice of assessment to be dated3. In a case where an undated document headed 'Remittance Advice' was handed to the trader concerned, the chairman said4:

'… I have therefore come to the conclusion that the omission of a date on the remittance advice in the instant appeal is not statutably fatal. That is not to say that I consider the omission of a date to be a desirable practice but I nevertheless consider that where, as here, a document is handed to a person he must be taken to know the date on which it was put into his hands. It is a matter which, not being a statutory requirement,

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial