Minimal co-operation

Application for closure notices

The taxpayer applied for a direction that closure notices (TMA 1970 s 28A(1) be given for investigations into his self-assessment tax returns for the years 2008-09 to 2013-14.

The First-tier Tribunal noted that HMRC had issued several notices for information under FA 2008 Sch 36 but the taxpayer had failed to comply with any of them. He had supplied some documents but these gave rise to more questions. He had developed a property business over 20 years but produced few business records. It was not possible therefore for HMRC to verify those presented as authentic accurate or complete.

The judge said it was ‘stating the obvious’ to describe the taxpayer’s dealings with HMRC as lacking in ‘candour if not duplicity’. The returns showing nil or negligible income for at least four years suggested ‘not only glaring inaccuracies but possibly deliberate...