Mr. Niall Cody:

While a case is subject to appeal and before an appeal hearing is held, we are always open to engagement with the taxpayer. We do not stop the engagement process just because there is an appeal. The issue is that we have raised an assessment. If that is as a result of an intervention by us, for example, an audit, we will have engaged with the taxpayer and his or her agent and set out our reasons for believing there is a liability. Most of our audit settlements are reached without the raising of an assessment and the issuing of an appeal. If there is an additional liability, it is settled by agreement and, hopefully, paid. Where there is a disagreement at the end of an intervention, most appeal cases relate to an interpretation of the law whereas others relate to the quantum of the liability. For example, the best records not necessarily being kept was mentioned this morning. In such an instance, we would have assessed the liability and raised an assessment, which would then have been appealed. Those cases are less precise because, if there are not proper records, we make assumptions. However, we must have grounds to make an assessment. Before we do, there will be an engagement with the taxpayer. Assessments do not get entered lightly. Following the appeal, we are open to dealing with reasonable grounds for settling the case.