Adam Craggs analyses HMRC’s latest defeat in the First-tier Tribunal
Her Majesty’s Revenue and Customs (HMRC) are able to raise what are colloquially called “discovery” assessments under s 29 of the Taxes Management Act 1970 (TMA 1970). This is a topical issue at the moment among tax practitioners and there have been a number of important cases in recent months. The latest taxpayer to successfully challenge the validity of a discovery assessment is Anthony While (While v HMRC [2012] UKFTT 58 (TC)).
Background
Before considering While’s case, it may be helpful to remind ourselves of the relevant statutory provisions. As readers will be aware, under s 9A of TMA 1970, HMRC may enquire into a taxpayer’s self-assessment return if they notify the taxpayer of their intention to do so:
- up to the end of the period of 12 months after the day on which the return was delivered if the return was delivered on or before the filing date;
- up to and including the quarter day next following the first anniversary of the day on which the return was delivered, if the
