In R Robson v HMRC [2023] UKFTT 226 (TC) (2 March 2023) the FTT decided that discovery assessments had not been validly made because tax returns which had led to a loss of tax (via fraudulent EIS claims) could not be said to have been submitted. The taxpayer’s agent had filed those returns but without the taxpayer’s authorisation or knowledge.
HMRC had issued the discovery assessments to recover amounts of EIS relief paid to the taxpayer (R) but to which he had not been entitled. On request R was unable to provide forms EIS3 to substantiate the EIS claims because he had not made the investments and had no knowledge of claims being made in his tax returns. He had instructed an agent to act in relation to a ‘tax rebate’ which he believed was due (having received tax refunds in the past) and had relied...
