Featherstone v Revenue & Customs (INCOME TAX - Self Assessment) [2016] UKFTT 747 (TC) (7 November 2016)

Featherstone v Revenue & Customs (INCOME TAX - Self Assessment) [2016] UKFTT 747 (TC) (7 November 2016)

The Tribunal found that the information and documents provided by the applicant were insufficient, inconsistent, and unsubstantiated, raising more questions than answers. The applicant failed to cooperate fully or provide credible records. HMRC had reasonable grounds to continue the enquiry and could not issue a closure notice. No specific period for closure could be set due to the complexity and need for further investigation, including third-party information requests.

Citation
[2016] UKFTT 747
Parties
Applicant: Alan Featherstone; Respondents: The Commissioners for Her Majesty's Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
07 November 2016
Procedural Posture
Income Tax Self Assessment Closure Notice Application / First Tier Tribunal (tax Chamber) Application for Direction to Issue Closure Notice Under S 28 A(4) TMA 1970
Outcome
Application refused
Legal Topics
Self Assessment, Enquiry Under S 9 a TMA, Closure Notice, Protective Assessments, Disclosure Obligations, Penalties, Discovery Assessments
Tax Law Self Assessment Enquiry Under S 9 a TMA Closure Notice Protective Assessments Disclosure Obligations Penalties Discovery Assessments

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Parties

Alan Featherstone

Applicant

The Commissioners for Her Majesty's Revenue & Customs

Respondents

Procedural Posture

Income Tax Self Assessment Closure Notice Application / First Tier Tribunal (tax Chamber) Application for Direction to Issue Closure Notice Under S 28 A(4) TMA 1970

Legal Issues

  1. 1 Whether HMRC had reasonable grounds for not issuing a closure notice for the enquiry into the applicant's Self Assessment returns for 2011-12 and related years
  2. 2 Whether the period for the issue of a closure notice can be specified by the Tribunal
  3. 3 Whether HMRC's delay in responding to information was reasonable

Ratio Decidendi

The Tribunal found that the information and documents provided by the applicant were insufficient, inconsistent, and unsubstantiated, raising more questions than answers. The applicant failed to cooperate fully or provide credible records. HMRC had reasonable grounds to continue the enquiry and could not issue a closure notice. No specific period for closure could be set due to the complexity and need for further investigation, including third-party information requests.

Court Disposition

Application refused

Orders

  • The application for a direction requiring HMRC to issue closure notices is refused.