ADRG01700 - Opportunities for private discussions between the customer, their representatives and the HMRC mediator

During the mediation process there will be occasions where the HMRC mediator holds private discussions with the customer and any representatives they have, without the HMRC case team being involved.

The primary purpose of these private conversations is not to gather further facts, but to clarify the issues and areas of uncertainty, and find ways to improve communication and help resolve the dispute between the two parties.

However, these discussions are on the same terms as all conversations between customers and officers of HMRC: all relevant tax facts are on the record. A “tax fact” is a fact which has legal and technical implications for a taxpayer’s liability. In the unlikely event that, during these private sessions, a new tax fact emerges that has an effect on the tax or penalty position, then this fact will need to be communicated to the HMRC case team, preferably by the customer or their representative.

Within these private discussions there will be an opportunity to explore options for settlement. The HMRC mediator’s knowledge and experience of HMRC’s internal procedures can be drawn on to help the customer better understand the realities and options for resolution that are available.

The HMRC mediator will treat the customer’s negotiating position as private unless and until the customer is prepared to share it with the HMRC case team. It is important that, prior to the mediation, the difference between a tax fact and a negotiating position is made clear to the customer. An example of a negotiating position might be that the customer is not prepared to pay more than a certain amount of tax per quarter although it has a generally relaxed position as to the means and/or legal analysis by which this is achieved. Examples of tax facts are provided under ADRG01900.