Under the current rules only a single closure notice may be issued, when all aspects under enquiry are in a position to be included.

There can be no formal resolution of one issue without closing the whole enquiry into the return unless both parties agree to refer an issue to the tribunal.

HMRC says this approach is ‘inflexible’, particularly in complex cases or those involving high-risk or high-value issues, and maintains that in some instances businesses and individuals adopt a tactic of refusing to progress matters in order to ensure the dispute remains open, and tax remains unpaid, for as long as possible.

While the newly introduced Accelerated Payment regime removes the previous cash-flow advantage by requiring payment up front in relation to certain disputes involving tax avoidance, the legislation applies only where the avoidance scheme is notifiable under the Disclosure of Tax Avoidance Schemes (DOTAS) regime; is subject to the General Anti-Abuse Rule (GAAR) or has been issued with a follower notice.