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Incorrect tax return was not submitted by the taxpayer’s agent and discovery assessment conditions were not met

By Mark McLaughlin, July 2022

The taxpayer’s agent could not delegate the preparation and submission of a tax return without the taxpayer’s authority, and HMRC’s discovery assessment could not be made to recover lost tax by the fraudulent conduct of a sub-agent.

The appellant lost his job in July 2015 and undertook some work earning about £2,500. He needed to file a tax return for 2015/16 and knew an individual (SB), a director of a tax consultancy firm (A). He appointed A (not SB) to act as his agent and make the return, and handed the information concerning his affairs to SB.

A purported self-assessment return was sent to HM Revenue and Customs (HMRC) by another firm (C) in

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