Jimenez, R. (On the Application of) v The First Tier Tribunal (Tax Chamber) [2019] EWCA Civ 51 (31 January 2019)

Jimenez, R. (On the Application of) v The First Tier Tribunal (Tax Chamber) [2019] EWCA Civ 51 (31 January 2019)

Paragraph 1 of Schedule 36 to the Finance Act 2008 authorises HMRC to issue a taxpayer notice to a person resident outside the UK, provided that person is or may be a UK taxpayer. The power is an exercise of prescriptive jurisdiction, not enforcement jurisdiction, and does not breach international law as it does not require official acts in the foreign state or impose criminal sanctions for non-compliance. The statutory language, purpose, and public interest in effective tax investigation support this construction.

Citation
[2019] EWCA Civ 51
Parties
Respondent/claimant: Tony Michael Jimenez; Defendant/appellant: The First Tier Tribunal (Tax Chamber) Her Majesty's Commissioners for Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
31 January 2019
Procedural Posture
Judicial Review Appeal / Court of Appeal Judgment on Appeal From High Court (administrative Court)
Outcome
Appeal allowed
Legal Topics
Extra Territorial Effect of Tax Information Notices, Statutory Construction, International Law and Enforcement Jurisdiction, HMRC Investigatory Powers
Tax Law Public Law Administrative Law Extra Territorial Effect of Tax Information Notices Statutory Construction International Law and Enforcement Jurisdiction HMRC Investigatory Powers

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Parties

Tony Michael Jimenez

Respondent/claimant

The First Tier Tribunal (Tax Chamber) Her Majesty's Commissioners for Revenue and Customs

Defendant/appellant

Procedural Posture

Judicial Review Appeal / Court of Appeal Judgment on Appeal From High Court (administrative Court)

Legal Issues

  1. 1 Whether paragraph 1 of Schedule 36 to the Finance Act 2008 authorises HMRC to issue a taxpayer notice to a person resident outside the UK
  2. 2 Whether such extra-territorial application breaches international law or principles of statutory construction

Ratio Decidendi

Paragraph 1 of Schedule 36 to the Finance Act 2008 authorises HMRC to issue a taxpayer notice to a person resident outside the UK, provided that person is or may be a UK taxpayer. The power is an exercise of prescriptive jurisdiction, not enforcement jurisdiction, and does not breach international law as it does not require official acts in the foreign state or impose criminal sanctions for non-compliance. The statutory language, purpose, and public interest in effective tax investigation support this construction.

Court Disposition

Appeal allowed

Orders

  • High Court order quashing the taxpayer notice set aside
  • HMRC's taxpayer notice under paragraph 1 of Schedule 36 FA 2008 to Mr Jimenez reinstated