Negligent taxpayer
HMRC had opened enquiries into the taxpayer's self-assessment tax returns for the years 1998-99 to 2001-02. He submitted his 2002-03 return and in September 2005 HMRC raised an amended assessment for that year under the discovery provisions of TMA 1970 s 29. He appealed against the amended assessment on the basis that a discovery assessment could not be validly made where HMRC should have opened an enquiry.
The Special Commissioner said that s 29 had no time limit nor did it require HMRC to begin an enquiry into a taxpayer's affairs. HMRC did discover that the appellant's self assessment was insufficient for 2002-03 and was entitled under s 29(2) and (3) to make a further assessment as necessary. However a taxpayer could not be assessed unless one of two conditions in subsections (4) and (5) was satisfied. Subsection (4) relating to...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
