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HMRC internal manual

Company Taxation Manual

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:

  1. Paragraph 43 says that when a company has delivered a company tax return you can make a discovery determination 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,
  • a person who was a partner of the company at the relevant time.
  1. Paragraph 44 says 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 excessive relief on the basis of information made available to you, before that time:

  • as part of the company tax return, or
  • in related documents.

Note: 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.