Several people have successfully used this letter to get HMRC to withdraw discovery assessments.
The letter only applies to the specific scenario where
a) HMRC issued a s29 TMA 1970 notice of assessment (discovery)
AND
b) there was a DOTAS number on the self-assessment tax return
The paragraph in grey will not be applicable to everyone.
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I am writing concerning the assessment that HMRC opened into my 2007-08 self-assessment return on the basis of discovery.
HMRC failed to open an enquiry into my 2007-08 self-assessment return within the prescribed time limit for enquiries under Section 9A Taxes Management Act 1970, and has challenged the self-assessment return under Section 29 Taxes Management Act 1970. The conditions of Section 29(5) Taxes Management Act 1970 requiring an insufficiency of information have not however been met, and the assessment is therefore not valid. HMRC was provided with sufficient information as the scheme had been disclosed to HMRC under the Disclosure of Tax Avoidance Schemes (DOTAS) regulations, and the scheme reference number was included in my 2007-08 self-assessment tax return. I refer you to “HMRC v Charlton, Corfield & Another” for past precedent in this respect.
I further note that the HMRC assessment correspondence relating to my 2007-08 self-assessment return also references the enquiries “ongoing into your 2006-07 tax return”. Both the 2006-07 enquiry and the 2007-08 HMRC assessment relate to the same DOTAS registered scheme and evidence clear HMRC awareness of my use of the scheme from prior to the enquiry deadline for 2006-07. HMRC therefore had no reasonable grounds not to also raise an enquiry into the 2007-08 self-assessment return within the prescribed timeframes under standard enquiry provisions.
I would be grateful if you could confirm that this assessment, incorrectly opened under discovery, will now be withdrawn.
I look forward to hearing from you shortly.
The letter only applies to the specific scenario where
a) HMRC issued a s29 TMA 1970 notice of assessment (discovery)
AND
b) there was a DOTAS number on the self-assessment tax return
The paragraph in grey will not be applicable to everyone.
---------------------------------------------
I am writing concerning the assessment that HMRC opened into my 2007-08 self-assessment return on the basis of discovery.
HMRC failed to open an enquiry into my 2007-08 self-assessment return within the prescribed time limit for enquiries under Section 9A Taxes Management Act 1970, and has challenged the self-assessment return under Section 29 Taxes Management Act 1970. The conditions of Section 29(5) Taxes Management Act 1970 requiring an insufficiency of information have not however been met, and the assessment is therefore not valid. HMRC was provided with sufficient information as the scheme had been disclosed to HMRC under the Disclosure of Tax Avoidance Schemes (DOTAS) regulations, and the scheme reference number was included in my 2007-08 self-assessment tax return. I refer you to “HMRC v Charlton, Corfield & Another” for past precedent in this respect.
I further note that the HMRC assessment correspondence relating to my 2007-08 self-assessment return also references the enquiries “ongoing into your 2006-07 tax return”. Both the 2006-07 enquiry and the 2007-08 HMRC assessment relate to the same DOTAS registered scheme and evidence clear HMRC awareness of my use of the scheme from prior to the enquiry deadline for 2006-07. HMRC therefore had no reasonable grounds not to also raise an enquiry into the 2007-08 self-assessment return within the prescribed timeframes under standard enquiry provisions.
I would be grateful if you could confirm that this assessment, incorrectly opened under discovery, will now be withdrawn.
I look forward to hearing from you shortly.
Comment