Companies: Rights and Obligations: Determination of Tax or Losses
APs ending on or after 1 July 1999
All losses and negative amounts for an AP have to be included by a company in its return. A discovery determination can be made where you discover that a tax return delivered by the company for an accounting period incorrectly states
- an amount that affects, or may affect, the tax payable by that company for another accounting period, or
- an amount that affects, or may affect, the tax liability of another company.
Unlike a discovery assessment and a tax determination, a discovery determination can only be made where a return has been delivered. Unlike a discovery assessment, all that is required for a determination to be made is the possibility of a tax liability however remote rather than a probable tax liability CTM95500+.
Examples of discovery determinations follow at EM8045.
Where no return is delivered a determination of the CT payable can be made under FA98/Sch18/Paras 36 or 37. These determinations are commonly called HMRC Determinations. A determination under either of these paragraphs has effect as though it were a self-assessment. The company has no right of appeal against the determination, which can only be superseded by the company’s self-assessment made in its CTSA return CMT95300+.
APs ending after 30 September 1992 and before 1 July 1999
Trading losses and other amounts which may be surrendered as group relief could be determined by an officer. Determinations were often made in the letter agreeing the amount assessable and sometimes in the notes space on the CTPF assessment.