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HMRC internal manual

Enquiry Manual

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HM Revenue & Customs
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Concluding the Enquiry: False Statement of Assets and Liabilities/Certificates of Disclosure: Taxpayer Deceased

Where the defaulting taxpayer has died (so that the possibility of criminal proceedings against him no longer exists) and the only evidence against him of irregularities relates to years which are no longer assessable, even under TMA70/S40 (2), no further action can be taken. Where assessments were made before death or can be made under TMA70/S40 (2), proceedings are confined to those years and penalties which are not time-barred EM5201.

Where, however, the deceased was a director, and the false statements of assets and liabilities or certificate of disclosure are relevant to the profits of the company, the restricted time limits for assessment of deceased persons do not apply. Any necessary action to establish the underassessment on the company, in so far as it is referable to the deceased’s false statement of assets and liabilities or certificate of disclosure, should be taken. The possibility that his fellow directors have also completed false statements or certificates should be borne in mind. Any such cases should be dealt with in accordance with EM3821.

Similar considerations apply in the case of partnerships set up before 6 April 1994, in relation to assessments that could be made on the partnership for pre SA years EM7310.