Participator problem

The Inland Revenue has recently concluded enquiries into my client family company's corporation tax return and advises that no amendments are required.

However I believe that the Revenue should be seeking tax under section 419 Taxes Act 1988. Shares in the company are held by a father his sons and their wives. The company had made a loan to a partnership consisting of daughter/sister and her husband.

I clearly advised the Revenue of this and that the daughter was an associate of a participator. The Inspector concluded his enquiries stating that the loan was not to a participator and that therefore no tax was due.

Given that all the relevant information was made available to the Inspector case law suggests that the Revenue cannot subsequently seek to amend the decision and collect the tax. Is this case law still relevant or by not advising the...