CTM95510 - Corporation Tax self-assessment (CTSA): Discovery determination: General

FA98/SCH18/PARA41 (2)

A discovery determination is the counterpart of a discovery assessment.

You make a discovery assessment when a discovery relates to:

• understated profits, or
• overclaimed or overstated relief,

that leads to additional tax liability for the company for the period to which the discovery relates - see CTM95030 onwards.

You make a discovery determination when a discovery:

• relates to
• overstated losses, or
• overclaimed or overstated relief, and
• leads (or may lead) to additional tax liability either:
• for a different period from that to which the discovery relates, or
• for a different company.

Despite the use of the word “determination”, a discovery determination under Paragraph 41 (2) is totally different from a “Revenue determination” under FA98/SCH18/PARA36 or 37.

You can only make a Revenue determination under Paragraphs 36 and 37when:

• the company has not delivered a return, or
• it only partly complies with a notice to deliver a return.

You can only make a discovery determination when:

• the company has already delivered a return.