Disclosure ― relationship with discovery

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

The issue of disclosure is a fundamental risk management consideration for both compliance and planning work. The reason for this is that where insufficient disclosure has been provided, HMRC is able to open an enquiry beyond the normal enquiry window on the grounds of ‘discovery’.

Discovery assessments ― relevance of full disclosure

HMRC’s discovery provisions are in place so that a taxpayer who has made a full disclosure in their tax return can expect finality once the window for raising enquiries has passed.

The discovery legislation is contained within TMA 1970, s 29 and FA 1998, Sch 18, Pt V, paras 41–45. A discovery assessment can only be made if one of the following two conditions is met:

•
any additional tax that is due arises from the careless or deliberate behaviour of the taxpayer or a person acting on their behalf, or
•
the officer could not have been reasonably expected, on the basis of the information made available to them, to be aware of the under-assessment

The second condition relates to disclosure.

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more

Employment Tax

Non-business expenses

Non-business expensesIntroductionIn order for an expense to be tax deductible it must be incurred because of an employee’s employment. Any non-business related expense is, therefore, not relievable except in some very particular circumstances.This guidance note deals with three separate issues. The

14 Jul 2020 12:16 | Produced by Tolley Read more

Owner-Managed Businesses

Capital allowances on cars

Capital allowances on carsSummary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions of 50g/km and below 18%CAA 2001, s 104AASecondhand cars with CO2

14 Jul 2020 11:08 | Produced by Tolley Read more

Autumn Budget 2024

��Ƶ