Tax case - Prison is no escape

In 1998, the taxpayer was sentenced to four years' imprisonment for conspiracy to account falsely. Investigations into his affairs continued while he was in prison, and resulted in the Revenue writing to him in March 2001 requesting certain information from him. The taxpayer did not supply this information, so in June 2001 the Revenue told him and his solicitors that it would apply to the General Commissioners for a notice under section 20, Taxes Management Act 1970. The solicitors wrote to the General Commissioners saying that it was unreasonable to expect the taxpayer to supply the information because he was unable to travel abroad to obtain the information.

However, the General Commissioners consented to the issue of the section 20 notice, so the taxpayer applied for permission to seek judicial review of the Commissioners' decision. Mr Justice Silber refused the application, and the taxpayer's renewed application was refused by Mr Justice Newman, on the grounds that the taxpayer could have appointed an adviser to obtain the information.

In the Appeal Court, Mr Justice Hart said that the taxpayer's submissions had confused the role of the judge on the application for permission to apply for judicial review with that of the General Commissioners in deciding to authorise the notice.

Under section 20, the Inspector was the decision maker, and the General Commissioners had the duty to monitor the decision. An appeal from the judge's order had no real prospect of success, so the application was dismissed.

Lord Justice Brooke agreed that the application be dismissed.

(R (on the application of Werner) v Commissioners of Inland Revenue, Court of Appeal, 12 July 2002.)

Issue: 3874 / Categories: