EM3231 - Discovery: making a discovery - whether there is a discovery: who makes it

A discovery is made where an officer of HMRC reaches a conclusion that

  • there is tax which ought to have been assessed but has not been assessed, or
  • an assessment is or has become insufficient, or
  • any relief that has been given is or has become excessive

A discovery must be more than mere suspicion. The officer must have a reasonable belief that an insufficiency exists.

There do not need to be any new facts or information for a discovery to be made. All that is required is that the officer newly reaches a conclusion that a loss of tax exists. This includes a situation where the officer comes to a new conclusion or changes their opinion.

A discovery must be made by an individual officer. A discovery cannot be made by 바카라 사이트˜HMRC바카라 사이트™ or by a 바카라 사이트˜team바카라 사이트™ within HMRC.

The Supreme Court determined in HMRC v Tooth [2021] UKSC 17 that there is no principle of collective knowledge within HMRC. This means that one officer바카라 사이트™s knowledge cannot be deemed to be imparted on another officer.

Further, the Supreme Court determined that an officer can make the same discovery as another officer, with that counting as a new discovery for that particular officer.

S29(1) TMA1970

Para 41 Sch 18 FA1998