Paragraph 4 C1C2C3

Where a person has failed to make any returns required under this Act or to keep any documents and afford the facilities necessary to verify such returns or where it appears to the Commissioners that such returns are incomplete or incorrect they may assess the amount of tax due from him to the best of their judgment and notify it to him.

In any case where, for any prescribed accounting period, there has been paid or credited to any person-

an amount which ought not to have been so paid or credited, F2or which would not have been so paid or credited had the facts been known or been as they later turn out to be,the Commissioners may assess that amount as being tax due from him for that period and notify it to him accordingly.

An amount-

may be assessed under sub-paragraph (2) above notwithstanding that cancellation.

Where a person is assessed under sub-paragraphs (1) and (2) above in respect of the same prescribed accounting period the assessments may be combined and notified to him as one assessment.

Where the person failing to make a return, or making a return which appears to the Commissioners to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, sub-paragraph (1) above shall apply as if the reference to tax due from him included a reference to tax due from that other person.

An assessment under sub-paragraph F4(1), (2) or (2A)above of an amount of tax due for any prescribed accounting period F5must be made within the time limits provided for in section 22 of the Finance Act 1985 (ultimate time limits on assessments) and shall not be made after the later of the following—

F6but (subject to that section) where further such evidence comes to the Commissioners’ knowledge after the making of an assessment under sub-paragraph (1), (2) or (2A) above, another assessment may be made under that sub-paragraph, in addition to any earlier assessment.

Where a taxable person has F7in the course or furtherance of a business carried on by him, been supplied with any goods, acquired any goods from another member State or otherwise obtained possession or control of any goods or has, in the course or furtherance of such a business, imported any goods from a place outside the member States, the Commissioners may require him from time to time to account for the goods; and if he fails to prove that the goods have been or are available to be supplied by him F8or have been exported or otherwise removed from the United Kingdom without being exported or so removed by way of supplyor have been lost or destroyed they may assess to the best of their judgment and notify to him the amount of tax that would have been chargeable in respect of the supply of the goods if they had been supplied by him.

In any case where,—

then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than which they would otherwise have considered to be appropriate.

Where an amount has been assessed and notified to any person under sub-paragraph F11(1), (2), (2A) or (6)above it shall, subject to the provisions of this Act as to appeals, be deemed to be an amount of tax due from him and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.

For the purposes of this paragraph notification to a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting as aforesaid shall be treated as notification to the person in relation to whom he so acts.