Article 128- Discovery Assessments and Determinations
(1) If the
Tax Department discover with regard to an Accounting Period of a QFC Entity that—
(a) an amount which ought to have been assessed to tax has not been assessed;
(b) an assessment to tax is or has become insufficient; or
(c) relief has been given which is or has become excessive, including relief under Part 16,
they may, subject to Article 128(3), make an assessment (a "discovery assessment") in the amount or further amount which ought in their opinion to be charged or amended in order to make good the loss of tax or the overpayment of a tax credit in respect of a
Reimbursable Tax Loss under Part 16.
(2) If the
Tax Department discover that a return filed by a QFC Entity for an Accounting Period incorrectly states—
(a) an amount that affects, or may affect, the tax payable by that
QFC Entity for another Accounting Period; or
(b) an amount that affects, or may affect, the tax liability of another
they may, subject to Article 128(3), make a determination (a "discovery determination") of the amount which in their opinion ought to have been stated in the return.
(3) A discovery assessment or discovery determination under this Article may only be made if either Article 128(4) or Article 128(5) applies.
(4) A discovery assessment for an
Accounting Period for which a QFC Entity has filed a return, or a discovery determination, may be made if at the time that the Tax Department—
(a) ceased to be entitled to give notice of enquiry into the return; or
(b) completed their enquiries into the return,
they could not have been reasonably expected, on the basis of information made available to them before that time, to be aware of the situation mentioned in Article 128(1) or (2).
(5) A discovery assessment for an
Accounting Period for which a QFC Entity has filed a return, or a discovery determination, may be made if the situation mentioned in Article 128(1) or (2) is attributable to the fraudulent or negligent conduct of the QFC Entity or a Person acting on that QFC Entity's behalf.
|Amended (as from 18th June 2014)|