Recovery of tax wrongly refunded by way of discovery assessment
In Patrick Jones v HMRC [2014] UKFTT 1047 (19 November 2014) the FTT found that HMRC had been entitled to issue a discovery assessment to recover tax wrongly refunded to the taxpayer.
HMRC’s automatic system had wrongly calculated the tax liability of Mr Jones due to an error in his self-assessment return which suggested that he had overpaid tax. The ‘overpayment’ was repaid to Mr Jones who did not query it.
Having received a PAYE return from Mr Jones’ employer HMRC realised the error and issued a discovery assessment for the correct amount. Mr Jones did not dispute the correctness of the figure and accepted HMRC’s calculations. However he claimed that he should not be expected to refund the monies together with interest three years after having received the monies back from HMRC.
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Recovery of tax wrongly refunded by way of discovery assessment
In Patrick Jones v HMRC [2014] UKFTT 1047 (19 November 2014) the FTT found that HMRC had been entitled to issue a discovery assessment to recover tax wrongly refunded to the taxpayer.
HMRC’s automatic system had wrongly calculated the tax liability of Mr Jones due to an error in his self-assessment return which suggested that he had overpaid tax. The ‘overpayment’ was repaid to Mr Jones who did not query it.
Having received a PAYE return from Mr Jones’ employer HMRC realised the error and issued a discovery assessment for the correct amount. Mr Jones did not dispute the correctness of the figure and accepted HMRC’s calculations. However he claimed that he should not be expected to refund the monies together with interest three years after having received the monies back from HMRC.
...
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.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")