Finance Act 1998

Assessment where loss of tax discovered or determination of amount discovered to be incorrectU.K.

41(1)If [F1an officer of Revenue and Customs] [F2discovers] as regards an accounting period of a company that—U.K.

(a)an amount which ought to have been assessed to tax has not been assessed, or

(b)an assessment to tax is or has become insufficient, or

(c)relief has been given which is or has become excessive,

[F2he] may make an assessment (a “discovery assessment") in the amount or further amount which ought in [F2his] opinion to be charged in order to make good to the Crown the loss of tax.

(2)If [F1an officer of Revenue and Customs] [F2discovers] that a company tax return delivered by a company for an accounting period incorrectly states—

(a)an amount that affects, or may affect, the tax payable by that company for another accounting period, or

(b)an amount that affects, or may affect, the tax liability of another company,

[F2he] may make a determination (a “discovery determination") of the amount which in [F2his] opinion ought to have been stated in the return.