In A Cooke v HMRC [2017] UKFTT 844 (24 November 2017) the FTT allowed the taxpayer’s appeal against a discovery assessment.
Mr Cooke had filed self-assessment returns including entries in the ‘foreign’ pages for dividends from three jurisdictions. HMRC had opened enquiries into the 2013/14 returns because foreign tax credit had been claimed. HMRC found that both the French and Canadian dividends were in excess of the permitted amount under the terms of the double tax treaties with France and Canada. These treaties each place a limit of 15% on the tax that can be imposed on dividends paid to residents of the other contracting state.
HMRC’s enquiry into the 2013/14 return led it to check the 2012/13 return in which the same error was detected. A discovery assessment was issued which was the object of this appeal. The issue was whether either or both of...
