Michael S K Yip v HMRC

In Michael S K Yip v HMRC [2014] UKFTT 865 (3 September 2014) the FTT held that the requirements for a discovery were satisfied.

The taxpayer contended that the requirement (in TMA 1970 s 29(1)) for a discovery was not satisfied as enquiries (under TMA 1970 s 9A) had been opened into the relevant returns and PAYE enquiries (under the Income Tax (PAYE) Regulations SI 2003/2682 reg 72(5) had confirmed the taxpayer’s liability. Closure notices had duly been issued and HMRC had subsequently issued discovery assessments in respect of income tax not included in the closure notices.

The FTT referred to Corbally-Stourton [2008] UKSpC00692 as authority for the proposition that there can be both a closure notice and a discovery assessment. The FTT added that there had been full disclosure neither in the tax returns nor during the enquiry ...