Discovery permitted

Quantum of assessments was correct given lack of evidence produced by the taxpayer

The taxpayer appealed against discovery assessments for the years 1998/99 to 2005/06 made by the Serious Organised Crime Agency (SOCA) (now the National Crime Agency) in August 2011. He had acquired several properties between 1998 and 2005 and in 2005/06 sold four. HMRC issued him tax returns but he failed to file any.

In April 2007 the Asset Recovery Agency (which became SOCA) served a s 317 notice under the Proceeds of Crime Act 2002 on HMRC because the taxpayer held a large number of properties and a large quantity of cash but had no explanation of how he had accumulated them. This resulted in the discovery assessments. The taxpayer appealed.

His first ground of appeal – whether SOCA had the right to raise assessments – was determined against him in a preliminary hearing of the...