McWatt v Revenue and Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2018] UKFTT 228 (TC) (19 April 2018)

McWatt v Revenue and Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2018] UKFTT 228 (TC) (19 April 2018)

HMRC demonstrated reasonable grounds for not issuing closure notices because significant information and documentation required to check the applicant’s tax position remained outstanding, including compliance with Tribunal-approved information notices. The Tribunal has no jurisdiction to adjudicate complaints about HMRC conduct or to admit new evidence at the closing submissions stage without procedural fairness. No specified period for closure could be set in the circumstances.

Citation
[2018] UKFTT 228
Parties
Applicant: Pauline McWatt; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
19 April 2018
Procedural Posture
Application for Closure Notice Under S 28 a Taxes Management Act 1970 / First Tier Tribunal (tax) Decision on Closure Notice Applications
Outcome
Applications for closure notices refused
Legal Topics
Income Tax, Self Assessment, Tax Enquiry, Closure Notice, Jurisdiction of Tribunal, Information Notices, Burden of Proof
Tax Law Income Tax Self Assessment Tax Enquiry Closure Notice Jurisdiction of Tribunal Information Notices Burden of Proof

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Parties

Pauline McWatt

Applicant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Application for Closure Notice Under S 28 a Taxes Management Act 1970 / First Tier Tribunal (tax) Decision on Closure Notice Applications

Legal Issues

  1. 1 Whether HMRC had reasonable grounds for not issuing closure notices for tax years 2011-12 to 2015-16 under s 28A TMA 1970
  2. 2 Whether the Tribunal has jurisdiction to consider complaints against HMRC conduct
  3. 3 Whether new evidence is admissible at closing submissions stage

Ratio Decidendi

HMRC demonstrated reasonable grounds for not issuing closure notices because significant information and documentation required to check the applicant’s tax position remained outstanding, including compliance with Tribunal-approved information notices. The Tribunal has no jurisdiction to adjudicate complaints about HMRC conduct or to admit new evidence at the closing submissions stage without procedural fairness. No specified period for closure could be set in the circumstances.

Court Disposition

Applications for closure notices refused

Orders

  • No closure notices to be issued for tax years 2011-12 to 2015-16
  • No specified period set for issue of closure notices