DST63800 - Revenue Determinations
A responsible member may fail to deliver a Digital Services Tax return under FA20/SCH8/PARA2. When this happens an HMRC officer can determine the amount of tax payable by the group for an accounting period (“an HMRC determination”) to the best of their information and belief.
The notice of an HMRC determination must be served on the responsible member, which as per FA20/PART2/Section 52, is a reference to a nominated company within the group, otherwise, the parent of the group.
Timing
An HMRC officer can only make a Revenue Determination if no DST return has been delivered by the filing date, and the officer has reasonable grounds for believing the Responsible Member is under a duty to deliver a DST return for the accounting period.
No HMRC determination may be made more than 3 years after the filing date.
The notice of an HMRC determination must state the date on which it is issued and must be served on the responsible member.
Right of Appeal
There is no right of appeal against a Revenue Determination. However, submission of the DST return will supersede the Revenue Determination and the determined amount of tax will be automatically amended to the return amount, providing the return is received within the relevant time limits. For more details see DST63900.
Any related interest amounts will also be automatically amended.
Effect of determination
A Revenue Determination has the same effect for enforcement purposes as a Self-Assessment return (FA20/SCH8/PARA17). ‘Enforcement purposes’ means the purposes of provisions providing for:
- tax-related penalties,
- collection and recovery of tax, and
- interest on overdue tax.