Discovery allowed

The appellant a builder was employed by three companies of which he was either a director or company secretary during 1996 to 1999. He claimed in his self-assessment tax returns to have had PAYE tax deducted from his earnings but none was received by HMRC.

HMRC wrote to the companies informing them that directions under Regulation 42(3) of the 1993 Employment Regulations were going to be issued. Directions were ultimately made directing that the outstanding tax be collected from the appellant.

As a result of the directions the appellant's tax returns were insufficient so HMRC issued discovery assessments to give effect to the regulation 42(3) directions.

The appellant appealed against the discovery assessments on the grounds that he should be given credit for tax paid.

The Special Commissioner found as a fact that no PAYE tax had been paid in respect of his...