Paragraph 24

(1)

If the taxpayer has delivered a return in respect of the interest in question for the chargeable period in question, an assessment under paragraph 21 or 22 may only be made in the two cases specified in sub-paragraphs (2) and (3). See also the further restriction in sub-paragraph (7).

(2)

The first case is where the situation mentioned in paragraph 21(1) or 22(1) was brought about carelessly or deliberately by—

(a)

the taxpayer,

(b)

a person acting on behalf of the taxpayer, or

(c)

a person who was a partner of the taxpayer at the relevant time.

(3)

The second case is where it could not reasonably have been expected that an officer of Revenue and Customs in possession of the information made available to HMRC before the relevant time would be aware at the relevant time of the situation mentioned in paragraph 21(1) or 22(1).

(4)

In sub-paragraph (3) “the relevant time” means the time HMRC—

(a)

ceased to be entitled to give a notice of enquiry into the return, or

(b)

completed their enquiries into the return.

(5)

For this purpose information is regarded as made available to HMRC if—

(a)

it is contained in a return delivered by the taxpayer,

(b)

it is contained in any documents produced or information provided to an officer of Revenue and Customs for the purposes of an enquiry into any such return,

(c)

it is information the existence and relevance of which officers of Revenue and Customs could reasonably have been expected to infer from information made available as mentioned in paragraph (a) or (b), or

(d)

it is information the existence and relevance of which was notified to an officer of Revenue and Customs by the taxpayer or a person acting on the taxpayer's behalf.

(6)

In sub-paragraph (5)(c) and (d) “relevance” means relevance as regards the situation mentioned in paragraph 21(1) or 22(1).

(7)

No assessment may be made under paragraph 21 or 22 if—

(a)

the situation mentioned in paragraph 21(1) or 22(1) is attributable to a mistake in the return as to the basis on which the tax liability ought to have been calculated, and

(b)

the return was in fact made on the basis prevailing, or in accordance with the practice generally prevailing, at the time it was made.