Scope of tribunal’s power

The taxpayer was incorporated in 2009. It developed and provided telecommunications equipment and the changing technology of such communications – from 2G to 3G to 4G – required continual development of its products. It claimed and received research and development (R&D) tax credit for the periods to 31 March 2017and 30 June 2017.

In November 2018 the company made an R&D tax credit claim for the period to 30 June 2018. However HMRC opened an enquiry in the claim - 81 days after the claim was submitted. In June 2019 the company entered voluntary liquidation and in August HMRC issued a closure notice disallowing the R&D tax credit claim. This was on the basis that the company was in liquidation as a result of which the going concern condition in CTA 2009 s 1057(2) was not met.

The directors attributed the failure of the company in part...