HMRC’s assessment powers vary depending on the tax at issue but there are common themes, write Matthew Greene and Guy Bud (Stewarts).
Nearly a century ago Lord Dunedin observed in Whitney v IRC [1926] AC 37 that there were invariably three stages in administering a tax. The first of these – ‘liability’ – was rather abstract in nature and followed ‘the statute which determines what persons in respect of what property are liable’. ‘Assessment’ the second stage was very different and much more tangible. ‘Liability does not depend on assessment’ he observed. ‘That ex hypothesi has already been fixed. But assessment particularizes the exact sum which a person liable has to pay.’ Only once a sum had been assessed would it be possible to move to the third stage: ‘recovery’.
Although not always applicable Lord Dunedin’s words still provide a helpful way to think...
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HMRC’s assessment powers vary depending on the tax at issue but there are common themes, write Matthew Greene and Guy Bud (Stewarts).
Nearly a century ago Lord Dunedin observed in Whitney v IRC [1926] AC 37 that there were invariably three stages in administering a tax. The first of these – ‘liability’ – was rather abstract in nature and followed ‘the statute which determines what persons in respect of what property are liable’. ‘Assessment’ the second stage was very different and much more tangible. ‘Liability does not depend on assessment’ he observed. ‘That ex hypothesi has already been fixed. But assessment particularizes the exact sum which a person liable has to pay.’ Only once a sum had been assessed would it be possible to move to the third stage: ‘recovery’.
Although not always applicable Lord Dunedin’s words still provide a helpful way to think...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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