News - taxcase- R v Gen Commrs for Div of Berkshire

Enquiry permitted

As a result of an HMRC investigation into their tax affairs in May 2004 in consideration of proceedings not being taken against the taxpayers in respect of tax interest and penalties the taxpayers made an offer to HMRC. This was accepted and paid. Later that year HMRC said they planned to open an investigation into the taxpayers' partnership tax return for the year to April 2003 and their personal tax returns for the same year. The taxpayers appealed.
The General Commissioners ruled that the May 2004 agreement precluded HMRC from making further enquiries into the year ended April 2003. HMRC applied to have the decisions in the agreement quashed.
In the High Court the judge said that the agreement covered the amounts and periods as set out in schedules in the agreement while the taxpayers' liability for 2002-03 was restricted...