Oil Taxation Act 1975 Schedule 2 paragraph 11

Assessments to tax and determinations of loss, etc.

Paragraph 11 explains how HMRC must handle assessments and loss determinations depending on whether a participator's return is satisfactory, unsatisfactory, or missing altogether.

• Where HMRC is satisfied that a participator's return is materially correct, it must base its assessment or loss determination on that return.
• Where HMRC is not satisfied with the return, or the participator has failed to submit one at all, HMRC must make its assessment or loss determination to the best of its judgement.
• If a return has been submitted but HMRC is not satisfied with it, HMRC is not prevented from concluding that the participator's actual interest in oil won and saved differs from what was stated in the return.
• These rules ensure that HMRC can always reach an assessment or determination, whether or not a satisfactory return has been provided.