Close the enquiry

HMRC enquired into the tax return of a limited liability partnership whose first period of account ended on 5 April 2007.

Just over a year later the partnership applied to the Special Commissioners for a closure notice.

HMRC opposed the application on the basis that they were enquiring into complex transactions the tax at stake was substantial and the length of time taken so far was not protracted.

Furthermore they were awaiting information from third parties which might lead to further enquiries and it was important to reach the correct and comprehensive conclusions before issuing the closure notice.

However HMRC also admitted that they were enquiring into the partnership return rather than enquiring into the same matter in those of the 240 partners.

The Special Commissioner said that HMRC had sufficient information to enable them to make an informed judgment as to the matter under...