Why extend the assessing time limit where a taxpayer fails to notify/register?
Taxpayers have a long-standing obligation to notify HMRC that they are liable to tax. If a taxpayer does not notify HMRC, then HMRC may not find out about the taxpayer’s existence for some time. HMRC therefore needs more time to find these hidden taxpayers, to investigate their affairs and quantify the tax due. An extended assessing time limit removes a potential incentive for taxpayers not to notify liability, and hope they won’t be found and evade paying tax.
