Cherian v Revenue and Customs (INCOME TAX/CORPORATION TAX : Other) [2016] UKFTT 316 (TC) (09 May 2016)

Cherian v Revenue and Customs (INCOME TAX/CORPORATION TAX : Other) [2016] UKFTT 316 (TC) (09 May 2016)

HMRC had reasonable grounds for not issuing a closure notice as the enquiry was at a preliminary stage and further information, notably bank statements, was reasonably required to verify the appellant's tax position. The information notice was valid except for the requirement to provide personal bank statements without redaction of personal information. The penalties were properly imposed as the appellant had no reasonable excuse for non-compliance. There was no evidence of abuse of power or ulterior motive by HMRC.

Citation
[2016] UKFTT 316
Parties
Appellant: Mr Sony Cherian; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
09 May 2016
Procedural Posture
Income Tax/corporation Tax Other / First Tier Tribunal (tax) Decision on Closure Notice Application, Information Notice Appeal, and Penalty Appeal
Outcome
Application for closure notice refused; appeal against information notice dismissed except for variation; penalty appeals dismissed.
Legal Topics
Income Tax Enquiries, Closure Notice Under S 28 a TMA 1970, Information Notice Under Schedule 36 Finance Act 2008, Penalties for Non Compliance, Jurisdiction of Tribunal, Reasonable Excuse, Public Law Arguments in Tax Proceedings
Tax Law Administrative Law Income Tax Enquiries Closure Notice Under S 28 a TMA 1970 Information Notice Under Schedule 36 Finance Act 2008 Penalties for Non Compliance Jurisdiction of Tribunal Reasonable Excuse +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 19 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Mr Sony Cherian

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Other / First Tier Tribunal (tax) Decision on Closure Notice Application, Information Notice Appeal, and Penalty Appeal

Legal Issues

  1. 1 Whether HMRC should be directed to issue a closure notice for the 2012/13 tax return enquiry under s 28A TMA 1970
  2. 2 Whether the information notice issued under Schedule 36 Finance Act 2008 was valid and its requirements reasonable
  3. 3 Whether penalties for non-compliance with the information notice were properly imposed

Ratio Decidendi

HMRC had reasonable grounds for not issuing a closure notice as the enquiry was at a preliminary stage and further information, notably bank statements, was reasonably required to verify the appellant's tax position. The information notice was valid except for the requirement to provide personal bank statements without redaction of personal information. The penalties were properly imposed as the appellant had no reasonable excuse for non-compliance. There was no evidence of abuse of power or ulterior motive by HMRC.

Court Disposition

Application for closure notice refused; appeal against information notice dismissed except for variation; penalty appeals dismissed.

Orders

  • HMRC not directed to issue a closure notice for 2012/13 tax return enquiry.
  • Information notice varied to allow redaction of personal information from bank statements as per para 19(3) Schedule 36 FA 2008.