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ACCA Applied Skills · Taxation (UK) · The procedures relating to compliance checks, appeals and disputes

Elm Ltd appeals against an HMRC decision and has been told the case may go to the tribunal. Which ONE of the following correctly describes a stage or option in the process?

A taxpayer may notify its appeal to the First-tier Tribunal, which allocates the case to a category according to its complexity. ADR is voluntary, a review does not oblige HMRC to concede, and the Upper Tribunal hears onward appeals, not first appeals.

  1. AAfter a review has been requested, HMRC must always agree to settle the dispute in the taxpayer's favour
  2. BElm Ltd may notify the appeal to the tribunal, and the tribunal can set the case in a category based on complexityCorrect
  3. CThe Upper Tribunal is the first point of appeal after an HMRC review is declined
  4. DA taxpayer must always use ADR before a case can be heard by the First-tier Tribunal

Explanation

If the dispute is not resolved by review or agreement, the taxpayer may notify the appeal to the First-tier Tribunal, which allocates the case to a category (default paper, basic, standard or complex) according to its complexity. The Upper Tribunal hears appeals from the First-tier Tribunal, not first. ADR is voluntary and HMRC is not obliged to settle in the taxpayer's favour.

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