A discovery assessment in respect of an excessive claim in the appellant’s tax return for double tax relief was invalid, as an HMRC officer could have been reasonably expected to be aware that the claim was excessive, and HMRC had not demonstrated that the appellant’s accountants failed to take reasonable care.
HM Revenue and Customs (HMRC) opened an enquiry into the appellant’s tax return for 2013/14 and found that tax relief claimed in respect of French and Canadian dividends exceeded the amounts permitted under the terms of the relevant double tax treaties.
HMRC’s enquiry into the appellant’s tax return for 2013/14 led them to check his return for 2012/13, where the same error was detected. A discovery assessment for 2012/13 was issued in January 2016. The appellant appealed. The dispute between the parties related to whether either or both of the discovery conditions in TMA 1970, s 29(4) or (5)
