EM1540 - Opening an Enquiry: Which Year

TMA70/S29

FA 98/SCH18/PARA 41

Where you have information that suggests possible omissions are likely to have continued into a later year, enquiries should usually be opened via a Section 9A or Para 24 Notice into the most recent return. If there is no return currently open you should normally await receipt of the next return, taking formal action to obtain it if necessary.

The advantages of this approach are

• you will not be obliged to give reasons for your enquiry, as you would if you were to rely on the discovery provisions EM3250+.
• you will not be obliged to make an assessment. If you launch immediately into an investigation under the discovery rules, the taxpayer or agent could insist on you making an assessment before they will answer any queries
• you will be able to use Section 19A and Para 27 to obtain information relating to the year which is the subject of the enquiry, rather than Section 20 or asking the Commissioners to use Regulation 10 AH3700. Although Section 19A and Para 27 cannot be used directly in relation to the earlier year, you may be able to obtain information needed on the earlier year informally following the issue of your Notice.