Corporation Tax self-assessment (CTSA): Assessments: Discovery - restrictions on the power to make
FA98/SCH18/PARA42 - 45
There are restrictions on making discovery assessments. You can only make a discovery assessment for an accounting period for which a company has delivered a company tax return if Paragraphs 43 or 44 apply.
- Paragraph 43 says that when a company has delivered a company tax return you can make a discovery assessment if the discovery made is attributable to fraudulent or negligent conduct on the part of:
- the company,
- a person acting on behalf of the company, or
- a person who was a partner of the company at the relevant time.
- Paragraph 44 says that you can make a discovery assessment for an accounting period for which the company has delivered a company tax return when you:
- are out of time for opening an enquiry into the return,
- have completed your enquiries into the return,
- you could not have been reasonably expected, on the basis of the information available to you before that time, to be aware of the matters discovered - see CTM95080.
Note: Paragraph 42 (2) removes these restrictions when you make a discovery assessment that only gives effect to a discovery determination made in relation to an amount stated in another company’s tax return.