There was no valid discovery assessment as there was no discovery of an insufficiency of tax in the taxpayer’s tax return in the disclosure of losses from a failed tax avoidance scheme, despite the losses being disclosed in the wrong boxes of the return following tax return software difficulties. 

Summary

There was no valid discovery assessment as there was no discovery of an insufficiency of tax in the taxpayer’s tax return in the disclosure of losses from a failed tax avoidance scheme, despite the losses being disclosed in the wrong boxes of the return following tax return software difficulties.

Background

In January 2009, the taxpayer (T) entered into a tax avoidance scheme on the understanding that employment-related losses would be generated for 2008/09,