ECSH90500 - Appeals and Reviews: Regulations 94 - 100
Regulations 94 鈥� 99 set out the right to a review and/or听appeal that businesses have against听肠别谤迟补颈苍听Economic Crime-Supervision (EC-S)听decisions under the听Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017).听
Regulation听94听- Offer of Review听
sets out that when a business is notified of a decision that can be appealed against, EC-S must offer听the business a听review of that decision. See for details of which decisions can be appealed against. The听offer of the review must be made by notice at the same time the business is notified of the original decision.听听
The notification of a conclusion of a review is excluded from this regulation and is therefore not subject to a review once issued.听听听听听
More information on Regulation 94 can be found in听ECSH64535听- Offer of review听and ECSH93000.听
Regulation听95 - Review by the Commissioners听
specifies that HMRC must review a decision if it has offered the Business a review of the decision and the business has accepted the offer of the review within 30 days of that offer being notified to it.听听听
If the Business has notified an appeal to Tribunal the Business cannot accept the offer of a review and HMRC must not review the decision. An appeal cannot be made until the review has reached its conclusion 鈥� see Regulation 100 below. More information on Regulation 95 can be found in ECSH64540听and ECSH93000.
Regulation听96听- Extensions of time听
Where a听notice of an offer of review听has been issued, a Business has 30 days (the 鈥�relevant period鈥�) to accept the offer of a review.听 HMRC may, within this relevant period, notify the Business that the relevant period is being extended.听 The period will be extended to either 30 days from the date of the notification of the extended time or to the specific date set out within the notification of the extended time.听听听
HMRC can give the Business more than one notice of an extension of the relevant period.听听听
More information on can be found in ECSH64545听and ECSH93000.听
Regulation 97 - Review out of time
When an听offer of a review has been issued to a Business by HMRC听but the Business has not accepted the offer of a review within the time allowed听under Regulation 95听or any extended time allowed under Regulation 96,听the business can submit听an application听for a review out of time.听 HMRC must review the decision if all the following apply:听
The听request for an out of time review is made in writing to HMRC;听
HMRC are satisfied that the Business had a听reasonable excuse for not accepting the offer of a review within the time allowed; and听
HMRC are satisfied that the Business submitted听its application听for an out of time review without unreasonable delay after the reasonable excuse ceased to apply.听听听
More information on 听can be found in听ECSH64550.听
Regulation听98听- Nature of review etc听
Where an offer of a review (under regulation听95) has been accepted by the business听(or a late application under regulation 97 has been accepted by HMRC), an independent team in HMRC (SOLS) will undertake the review and issue the conclusion.听听听
Regulation 98 sets out that the nature and extent of the review must be appropriate听in听the circumstances and must take into account听the steps taken before the review:听
by听HMRC in reaching the decision made; and听
by the Business seeking听to resolve the disagreement about the decision, including any representations made by the Business听(where those representations were made at a time which gave HMRC a reasonable opportunity to consider them听prior to making their decision).听听听
HMRC must conclude the review, by giving notice to the business, within 45 days of receiving the acceptance of an offer of a review听(or听the date on which HMRC decided to undertake a review following a late application) unless alternative dates have been or need to be agreed between HMRC and the Business.听 The review may conclude that the decision is upheld, varied听or cancelled.听听听
In the unlikely event that HMRC does not give the conclusions of a review within the specified timeframe, the review is treated as concluding that the decision is upheld.听 HMRC must notify the business that this is the case.听听听听
More information on Regulation听98听and reviews see听ECSH64555听and ECSH93000.听
Regulation听99听- Appeals against decisions of the Commissioners听
Appealable Decisions
specifies that supervisory decisions made by HMRC have a right of appeal.听 These are:听
A fit and proper decision under regulation 58,听where HMRC determines听that the person (business听or relevant individual)听is not fit and proper.听 A听decision that a person is not fit and proper because听the person has an unspent schedule 3 conviction听is not an appealable decision;听
Refusal to register an applicant听under regulation 59(1);听听
Suspension or cancellation of the business鈥檚 registration under regulation 60;听
Imposing a financial penalty or publishing听a censure statement under regulation 76;听
Imposing a prohibition on management under regulation 78.听
A direction under regulation 25(2);听
Agreement prior to a Tribunal听听
Part 5 (specified sections) of the Value Added Tax Act 1994 has听effect which, where an appeal has been made,听provides for an agreement to be reached between the parties (the Business (appellant) and HMRC) before the appeal is determined听by a tribunal.听 The agreement, whether in writing or otherwise, will听treat the decision under appeal as:听
Upheld without variation, or听
Varied in particular manner, or听
Discharged or cancelled.听
Where an agreement reached is not in writing, the terms agreed must be confirmed in writing by either HMRC giving notice to the appellant or the appellant giving notice to HMRC.听听听
If, within 30 days of the agreement being reached, the appellant听gives notice in writing to HMRC that it wishes to repudiate or resile from the agreement, the agreement will no longer have effect.听
This scenario is quite rare within EC-S, with ADR being more common. For more information see ECSH92000.听
Withdrawing an Appeal听听
Where a Business notifies HMRC, whether orally or in writing, that it no longer wishes to proceed听with the appeal, HMRC has 30 days to give notice indicating听it is unwilling that the appeal should be treated as withdrawn.听 Where notice is given by the appellant and HMRC听does not give notice within 30 days the appeal is treated as being upheld without variation.听听
More information on Regulation 99 see听ECSH64560, ECSH92500, ECSH93000 and ECSH93500.听
Regulation 100 鈥� Appeals against decisions of the Commissioners: procedure听
specifies that:听
An appeal under regulation 99 must be made within 30 days beginning on the date of notice notifying the decision or if later, the end of the relevant period听where a notification of an extended time was given under regulation 96.听
Where HMRC is听required to听undertake a review under regulation 95, an appeal cannot be made until HMRC has notified the Business of the conclusion of the review.听 Any appeal must be made within 30 days of that date.听
Where HMRC is听requested to undertake a review out of time, under regulation 97, an appeal cannot be made unless HMRC has notified the Business whether or not听a review will be undertaken.听 If HMRC has notified that an out of time review will be undertaken,听no appeal can be made until HMRC has notified the Business of the conclusion of the review but must be made within 30 days beginning of that date.听 If HMRC notifies听the Business that听it will not undertake an听out of time review, an appeal can only be made if the tribunal gives听permission to appeal.听听
Where HMRC does听not complete the review within the specified time听(and thus the decision is deemed to be upheld),听an appeal can be made听within 30 days of the date by which the review should have concluded听(that date being either 45 days after HMRC received notification that the Business accepted the offer of a review,听or an alternative date for the conclusion of the review agreed between HMRC and the Business).听听听
Where an appeal is not made by the dates set out above, an appeal can still be made where the tribunal gives听permission.听
听听
听
听
听