Mitchell: taxpayer confidentiality and a crisis of confidence?

Taxpayer confidentiality is a fundamental of the UK tax system. The understanding that sensitive information shared with HMRC will be held in confidence is integral to fostering taxpayer trust and compliance. Understanding HMRC’s approach to confidentiality is therefore of significant importance. In Mitchell v HMRC, the Court of Appeal considered HMRC’s powers to disclose taxpayer information and the First-Tier Tribunal’s jurisdiction in respect of such disclosures. While the Court of Appeal’s decision contains an unsurprising statement of the law, what is more interesting are the circumstances in which the case came before the court in the first place and the fact that HMRC sought the protection of an FTT order before making disclosure demonstrates a curious lack of confidence on HMRC’s part when it comes to the exercise of certain of its statutory powers.