The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
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’.
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, Part 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. In this respect information ‘made available’ is defined as being:
contained in a relevant return or any accounts, statements or documents accompanying a relevant return
contained in any relevant claim or accompanying accounts, statements or documents
contained in any documents, accounts or particulars supplied in connection with an enquiry into any relevant returns or claims
information whose existence could be reasonably expected to be inferred from information available under the items above or information notified in writing
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