Commentary

A6.417 Agreeing omissions, re-opening earlier years and certificate of full disclosure

Administration and compliance

A6.417 Agreeing omissions, re-opening earlier years and certificate of full disclosure

A6.417 Agreeing omissions, re-opening earlier years and certificate of full disclosure

Agreeing omissions with HMRC

The final stage in the working of the enquiry is to agree the level of omissions (if any) with HMRC. It is in the interests of both sides to reach a negotiated settlement and the emphasis at this stage is on negotiation. Where there is no firm evidence of the precise level of omissions, assumptions and estimates will have been made. Where the parties are unable to negotiate the settlement, the case may need to be reviewed under HMRC's Litigation and Settlement strategy (see A6.404 and A5.712).

This is the time when all aspects of the enquiry are reviewed and any relevant matters, which may previously have been overlooked, are brought to the officer's attention.

Omissions in the current year can indicate the presence of omissions in prior years

If HMRC is able to demonstrate omissions in one year, it has the authority to infer that there may have been similar omissions in previous years using the presumption of continuity1.

HMRC's authority for such action comes from a number of decided cases, some of which are as follows:

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