Since the 2010 changes to the time limits for discovery assessments it is more common to see HMRC relying on carelessness ‘by the taxpayer or a person acting on his behalf’ as a ground of discovery (TMA 1970 s 29(4)).
The changes to the time limits reduced the limit where the ground of discovery was lack of information to four years whereas the limit for discovery on the basis that an error was brought about carelessly or deliberately is six years (TMA 1970 ss 34 36).
It is important to remember that the six year limit applies whether the conduct in question is that of the taxpayer or ‘a person acting on his behalf’.
So while a...
