Summary
An insufficiency of tax was not brought about deliberately by disclosing losses from a failed tax avoidance scheme in the wrong boxes of a tax return, following tax return software difficulties, and an appeal against an extended time limit discovery assessment was therefore allowed.
Background
In January 2009, the appellant entered into a tax avoidance scheme, on the understanding that employment-related losses would be generated for 2008/09, which could be carried back to 2007/08.
When the appellant’s accountant prepared his tax return for 2007/08 using commercial software, the accountant was unable to access a box on the return to enter the income loss. Following advice from the software firm, the employment related loss was included on another part of the return instead (i.e. the partnership pages of the return), and reference was made in the &lsquo
