Betts v Revenue & Customs [2013] UKFTT 430 (TC) (30 July 2013)

Betts v Revenue & Customs [2013] UKFTT 430 (TC) (30 July 2013)

The Tribunal held that although the bank, building society, and credit card statements were reasonably required for the purpose of checking the appellant’s tax position (paragraph 1(1) satisfied), HMRC failed to demonstrate that condition B in paragraph 21(6)(a) was met. Specifically, HMRC did not have reason to suspect that an amount that ought to have been assessed to relevant tax for the chargeable period may not have been assessed. HMRC’s position was that the documents were needed to determine whether such suspicion could arise, which is the wrong way round; the statutory condition must be satisfied before the notice can be validly issued. As condition B was not met, the information...

Citation
[2013] UKFTT 430
Parties
Appellant: Kevin Betts; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
30 July 2013
Procedural Posture
Tax Appeal (first Tier Tribunal) / Full Decision Following Summary Decision on Appeal Against Information Notice Under Schedule 36 Finance Act 2008
Outcome
Appeal allowed
Legal Topics
Income Tax, Corporation Tax, Self Assessment, Information Notice, Schedule 36 Finance Act 2008, Residence for Tax Purposes
Tax Law Income Tax Corporation Tax Self Assessment Information Notice Schedule 36 Finance Act 2008 Residence for Tax Purposes

Case Brief

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Parties

Kevin Betts

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Appeal (first Tier Tribunal) / Full Decision Following Summary Decision on Appeal Against Information Notice Under Schedule 36 Finance Act 2008

Legal Issues

  1. 1 Whether the information notice issued under paragraph 1 of Schedule 36 Finance Act 2008 was valid
  2. 2 Whether the documents requested were reasonably required for the purpose of checking the taxpayer’s tax position (paragraph 1(1))
  3. 3 Whether condition B in paragraph 21(6)(a) was met (i.e., whether HMRC had reason to suspect that an amount ought to have been assessed to relevant tax for the chargeable period may not have been assessed)

Ratio Decidendi

The Tribunal held that although the bank, building society, and credit card statements were reasonably required for the purpose of checking the appellant’s tax position (paragraph 1(1) satisfied), HMRC failed to demonstrate that condition B in paragraph 21(6)(a) was met. Specifically, HMRC did not have reason to suspect that an amount that ought to have been assessed to relevant tax for the chargeable period may not have been assessed. HMRC’s position was that the documents were needed to determine whether such suspicion could arise, which is the wrong way round; the statutory condition must be satisfied before the notice can be validly issued. As condition B was not met, the information...

Court Disposition

Appeal allowed

Orders

  • The information notice dated 15 February 2012 is set aside under paragraph 32(3)(c) of Schedule 36 Finance Act 2008.