Corporation Tax self-assessment (CTSA): Discovery determination: Restriction on power to make
FA98/SCH18/PARA42 - 45
There are restrictions on making discovery determinations. You can only make a discovery determination if Paragraph 43 or 44 applies as below:
- Paragraph 43 states that when a company has delivered a company tax return you can make a discovery determination if the incorrect amount stated in the return was brought about by the careless or deliberate behaviour of:
- the company
- a person acting on behalf of the company
- a person who was a partner of the company at the relevant time.
- Paragraph 44 states that you can make a discovery determination for an accounting period for which a company has delivered a company tax return when you are out of time for opening an enquiry into the return, or have completed your enquiries into the return, and you could not have been reasonably expected to be aware of the matters discovered (see CTM95030 and CTM95040 on the basis of information made available to you, before that time:
- as part of the company tax return or
- in related documents.
Paragraph 42 (2) removes both of these restrictions when you make a discovery determination that only gives effect to a discovery determination made in relation to an amount stated in another company’s tax return.
Paragraph 42(2A) also removes both of these restrictions in respect of any income or chargeable gains in relation to which the company has been given a notice, after enquiries have been completed into the return, under section:
- 184G or 184H of TCGA92 (avoidance involving capital losses)
- 81(2) TIOPA10 (schemes and arrangements designed to increase relief)
- 232 or 249 TIOPA10 (avoidance involving tax arbitrage).