News - tax cases

Well discovered

A self-employed musician filed self-assessment tax returns for the six years to 2002-03. The Inspector sent a TMA 1970 s 9A notice opening an enquiry into his 2002-03 return. The Inspector also sent a letter requesting information relating to that return and asking about capital gains on his private residence disclosed in his other returns although he subsequently admitted that these were beyond the scope of the enquiry. The taxpayer said at a meeting that he did not own a Spanish property or bank account although he had done so before the meeting. The Inspector issued a closure notice for 2002-03 but made discovery assessments for the years 1999-2000 to 2003-04. The taxpayer appealed. He argued there could be no discovery when a s 9A notice was issued and that the notice was fundamentally flawed so anything flowing from that was also flawed. With...