A discovery too far

KEY POINTS

• Taxpayer took part in a SHIP scheme.
• Nature of information to be provided by the taxpayer.
• Similarities with CRC v Charlton and others [2013] STC 866.
• HMRC appear to rely on the ability to raise discovery assessments.

Since the Court of Appeal decision in Langham v Veltema [2004] STC 544 the courts and tribunals have considered several challenges to HMRC’s power to make discovery assessments after failing to open enquiries into self assessments in time.

It was hoped that the Upper Tribunal’s decision in CRC v Charlton and others [2013] STC 866 would provide clarity in an area of law and practice that can seem confusing.

That now seems unlikely because the First-tier Tribunal has decided in Robert Smith (TC2768) that HMRC can make a discovery assessment where the failure to open...