Leen v Commissioners for His Majesty's Revenue and Customs (INCOME TAX - information notice - Schedule 36 Finance Act 2008 - clinical consultancy fees) [2023] UKFTT 407 (TC) (04 May 2023)

Leen v Commissioners for His Majesty's Revenue and Customs (INCOME TAX - information notice - Schedule 36 Finance Act 2008 - clinical consultancy fees) [2023] UKFTT 407 (TC) (04 May 2023)

The tribunal found that HMRC had reason to suspect under-declaration of income, that the information requested was rationally connected to the investigation of the appellant's personal tax position, and that the appellant had not demonstrated the information was not reasonably required. The appeal was dismissed and the information notice, as amended, was confirmed.

Citation
[2023] UKFTT 407 (TC)
Parties
Appellant: Edward Lam Shang Leen; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
04 May 2023
Procedural Posture
Tax Appeal (first Tier Tribunal, Tax Chamber) / Appeal Against Information Notice Under Schedule 36 Finance Act 2008
Outcome
Appeal dismissed
Legal Topics
Income Tax, Information Notice, Schedule 36 Finance Act 2008, Burden of Proof, Personal Service Company, Self Assessment, Corporate Veil, Reasonably Required Test
Tax Law Administrative Law Income Tax Information Notice Schedule 36 Finance Act 2008 Burden of Proof Personal Service Company Self Assessment +2 more

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Parties

Edward Lam Shang Leen

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Tax Appeal (first Tier Tribunal, Tax Chamber) / Appeal Against Information Notice Under Schedule 36 Finance Act 2008

Legal Issues

  1. 1 Whether HMRC's information notice under Schedule 36 Finance Act 2008 was 'reasonably required' for checking the taxpayer's personal tax position
  2. 2 Whether the information requested relating to the appellant's company (GRI Research Laboratories Ltd) was within the appellant's possession or power and relevant to his personal tax position
  3. 3 Whether the burden of proof was met for issuing the information notice

Ratio Decidendi

The tribunal found that HMRC had reason to suspect under-declaration of income, that the information requested was rationally connected to the investigation of the appellant's personal tax position, and that the appellant had not demonstrated the information was not reasonably required. The appeal was dismissed and the information notice, as amended, was confirmed.

Court Disposition

Appeal dismissed

Orders

  • The information notice under Schedule 36 Finance Act 2008 is confirmed with amendments as specified in the tribunal's directions.
  • The appellant must comply with the amended notice within 30 days of the decision.