Craig Kirkham-Wilson (Simmons & Simmons) reviews a recent decision of the Upper Tribunal on staleness and Supreme Court precedent.
Section 29 of TMA 1970 permits HMRC on discovering an under-assessment of income or capital gains tax by an individual to assess the individual to tax on the shortfall. In HMRC v Tooth [2019] EWCA Civ 926 the Court of Appeal endorsed the frequently-put argument that a discovery requires an element of ‘newness’ and that if the assessment is not issued ‘within a reasonable period after’ the discovery is made it might no longer be said to be a ‘discovery’ at all because it lacks that ‘newness’.
Yet ‘staleness’ was not the only issue in the Tooth proceedings. On appeal ([2021] UKSC 17) (‘Tooth SC’) the Supreme Court decided that there had been no deliberate inaccuracy in the taxpayer’s return. Staleness strictly ...
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Craig Kirkham-Wilson (Simmons & Simmons) reviews a recent decision of the Upper Tribunal on staleness and Supreme Court precedent.
Section 29 of TMA 1970 permits HMRC on discovering an under-assessment of income or capital gains tax by an individual to assess the individual to tax on the shortfall. In HMRC v Tooth [2019] EWCA Civ 926 the Court of Appeal endorsed the frequently-put argument that a discovery requires an element of ‘newness’ and that if the assessment is not issued ‘within a reasonable period after’ the discovery is made it might no longer be said to be a ‘discovery’ at all because it lacks that ‘newness’.
Yet ‘staleness’ was not the only issue in the Tooth proceedings. On appeal ([2021] UKSC 17) (‘Tooth SC’) the Supreme Court decided that there had been no deliberate inaccuracy in the taxpayer’s return. Staleness strictly ...
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