Mabbutt v Revenue and Customs (INCOME TAX/CORPORATION TAX : Appeal) [2016] UKFTT 306 (TC) (05 May 2016)

Mabbutt v Revenue and Customs (INCOME TAX/CORPORATION TAX : Appeal) [2016] UKFTT 306 (TC) (05 May 2016)

The notice of enquiry was invalid because it referred to a non-existent tax year, failing to specify the correct return as required by Section 9A TMA 1970. Section 114 TMA 1970 does not cure this defect because the notice was not in substance and effect in conformity with the intent and meaning of the Taxes Acts. Without a valid enquiry notice, there was no valid enquiry and the closure notice has no standing.

Citation
[2016] UKFTT 306 (TC)
Parties
Appellant: Michael Mabbutt; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
05 May 2016
Procedural Posture
Income Tax/corporation Tax Appeal / Preliminary Issue on Validity of Enquiry Notice
Outcome
Appeal allowed
Legal Topics
Self Assessment, Notice of Enquiry, Validity of Notices, Section 9 a Taxes Management Act 1970, Section 114 Taxes Management Act 1970, Closure Notices
Tax Law Self Assessment Notice of Enquiry Validity of Notices Section 9 a Taxes Management Act 1970 Section 114 Taxes Management Act 1970 Closure Notices

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Parties

Michael Mabbutt

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Appeal / Preliminary Issue on Validity of Enquiry Notice

Legal Issues

  1. 1 Whether a notice of enquiry under Section 9A TMA 1970 is valid if it incorrectly describes the return in the notice
  2. 2 Whether Section 114 TMA 1970 can cure the defect in the notice

Ratio Decidendi

The notice of enquiry was invalid because it referred to a non-existent tax year, failing to specify the correct return as required by Section 9A TMA 1970. Section 114 TMA 1970 does not cure this defect because the notice was not in substance and effect in conformity with the intent and meaning of the Taxes Acts. Without a valid enquiry notice, there was no valid enquiry and the closure notice has no standing.

Court Disposition

Appeal allowed

Orders

  • The closure notice is invalid and has no standing. The appellant's tax liability for the year ended 5 April 2009 is settled on the basis of his return.