There are restrictions that apply to all information notices. In addition to these restrictions and rules that apply to all information notices, there are specific rules that apply to each type of notice.
Under FA 2008, Sch. 36, para. 1 a written notice can be sent to the taxpayer requiring them to:-
If the information or document is reasonably required for the purpose of checking the taxpayer’s tax position.
Para. 3 (4) permits the Tribunal to disapply conditions (c) and (d) if they are satisfied that telling the taxpayer that the information or documents are required and giving them a reasonable opportunity to make representations would prejudice the assessment or collection of tax.
HMRC have indicated that they would consider it would prejudice the assessment or collection of tax where they believe there is a risk of:-
The taxpayer can appeal against the notice or any requirement in it. There is no right of appeal however against:-
FA 2008, Sch. 36, para. 21 provides that if a person has made a self-assessment tax return in respect of a chargeable period, a taxpayer notice cannot be issued for checking their income tax or capital gains tax position (or corporation tax position for a company) for that chargeable period unless any of the following apply:-
These restrictions do not apply, however, if there has been a charge of ownership of a company and liability has arisen or might arise under ICTA 1988 S 767A or 767AA (FA 2008, Sch.36, para.37).
If a partnership return has been made, the restrictions in Para. 21 (see above) apply as if the return had been made by each of the partners in respect of the chargeable period. (FA 2008, Sch. 36, para. 36).
An open enquiry into a return of an individual partner does not prevent HMRC from issuing a notice to the partnership for the same chargeable period.
Approval for issuing a taxpayer notice:
The conditions that have to be met before the Tribunal can give its approval for a taxpayer notice are set out in FA 2008, Sch. 36, para. 3 and are as follows:-