It is encouraging to see the FTT dealing robustly with situations where HMRC fail to discharge their burden of proof, writes Sophie Rhind (Macfarlanes).
Dealing with an HMRC enquiry or investigation is frequently a stressful and time-consuming exercise. HMRC have wide-ranging powers to require large amounts of information and documents and they can continue with these enquiries for many years.
However while HMRC’s powers are extensive they are not unlimited. HMRC can only require information that is reasonably required to check the taxpayer’s tax position. HMRC must close an enquiry upon application unless they can show reasonable grounds for keeping it open and when it comes to discovery assessments and penalties HMRC need to meet certain conditions before they can be issued.
It is important for taxpayers to know how these conditions work but an area that is less explored is the...
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It is encouraging to see the FTT dealing robustly with situations where HMRC fail to discharge their burden of proof, writes Sophie Rhind (Macfarlanes).
Dealing with an HMRC enquiry or investigation is frequently a stressful and time-consuming exercise. HMRC have wide-ranging powers to require large amounts of information and documents and they can continue with these enquiries for many years.
However while HMRC’s powers are extensive they are not unlimited. HMRC can only require information that is reasonably required to check the taxpayer’s tax position. HMRC must close an enquiry upon application unless they can show reasonable grounds for keeping it open and when it comes to discovery assessments and penalties HMRC need to meet certain conditions before they can be issued.
It is important for taxpayers to know how these conditions work but an area that is less explored is the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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