A window of opportunity

Key points * A summary of the Kennerley case. * The relevant legislation. * The parties' arguments and submissions. * The decision and comparison with previous cases. * What the decision means for the future.

FOLLOWING THE MERGER of Customs and Revenue into HMRC the new body is reviewing the enquiry powers which will govern how it goes about ensuring that its customer base pays the 'correct' amount of tax. A new world may thus await. On the basis that history is a guide to the future by looking at recent tax cases dealing with HMRC powers we can perhaps glean how brave our new world is likely to be.
Since the introduction of self assessment 'discovery' rules have been redefined and tested by the courts. It is now well established that where there is negligence and where a subsequent 'discovery' is made by HMRC after...