The FTT has dismissed appeals against discovery assessments, holding that the taxpayer himself was not careless but that the firm acting on his behalf was (Rizvi v HMRC [2023] UKFTT 124 (TC)).
The case concerned a number of claims for relief under the Enterprise Investment Scheme. There was a loss of income tax, and that loss was not brought about carelessly by Dr Rizvi, but it was brought about by carelessness on the part of an agent acting on his behalf. The FTT therefore concluded that:
“In consequence, HMRC were entitled to raise the three discovery assessments in question, despite Dr Rizvi having submitted a SATR for the relevant years of assessment, and they could do so at any time up to the end of a period of six years after the end of the relevant year of assessment.”
https://www.bailii.org/uk/cases/UKFTT/TC/2023/TC08731.html
Related content from Claritax Books
Discovery Assessments, by tax barrister Keith Gordon, is a detailed, clearly written guide to the law and practice in this area. Based on the author’s personal involvement in many leading cases, the book contains much practical advice explaining when and how such assessments may be challenged.
