Reasonable enquiry

Application to close an enquiry on health grounds

HMRC opened an enquiry into the taxpayer’s 2013/14 return. The taxpayer’s adviser asked HMRC to drop the enquiry under its care and management provisions on the basis that no reason had been given for the enquiry the taxpayer was ill and her tax record was ‘squeaky clean’.

The First-tier Tribunal said HMRC was entitled to enquire into a taxpayer’s return to check that the figures are correct. To do so the officer needs to have the primary papers. The issue of a closure notice was not ‘to be taken lightly’ – HMRC could ‘not just pluck a figure out of the air’. Without information from the taxpayer to support the return HMRC would have no basis for stating a conclusion (as required in a closure notice (TMA 1970 s 9A(1)).

It was to the adviser’s credit that she...