Discovery assessments

I have a client who was an employee of a company or as the Inland Revenue see him a controlling official.  He had several deposits into his offshore account over a nine year period and under the first Off Shore Disclosure our client provided the interest details to HMRC.

An enquiry followed and discovery assessments raised and HMRC have advised that they will look to tax the amounts as remuneration and go down the section 72 route.  My question to you if you can help is that the assessments raised under discovery are for nil and the tax calculations issued together with the discovery assessments show the full remuneration for the period and the amount they are claiming they have discovered.  A credit then appears on the tax calculation giving him the equivalent PAYE due and the tax calculation shows no underpayment.

When the discovery assessments were first received I queried with the inspector the fact that they were nil and he responded by advising that this is the process they had to follow but tax calculations for each year would show the total remuneration due and a tax credit applied.  Once the assessments had been determined they would then go after my client using the 72 route as the company had been liquidated.  I was therefore advised to appeal these assessments if I did not agree with them.

As the assessments are nil why would I need to appeal against these.  I have read HMRC enquiry manual EM8515 which states that HMRC should make discovery assessment on the directors on estimated employment income and I read this as they should have included these estimates in the discovery assessments.  Also as I have submitted appeals against these should I now withdraw them or leave them and take the case to tribunal.

Finally the assessments were raised in December 2009 and if they are incorrect will HMRC be in time to amend these.

Any help that can be offered would be greatly appreciated.