The First-tier Tribunal held (among other preliminary issues prior to a substantive hearing) that it did not have jurisdiction to close an HMRC enquiry under Code of Practice 9 into the taxpayer’s tax affairs.
An individual (B), an appellant and a director of the appellant companies, received a letter from HM Revenue and Customs (HMRC) in December 2013, informing B that they were enquiring into his affairs under HMRC’s Code of Practice 9 (COP9). He was offered an opportunity to sign a contractual disclosure facility (CDF), admitting that he had been involved in tax fraud and agreeing to make a full disclosure. However, B refused to accept the CDF, and strongly denied any tax fraud.
HMRC also opened enquiries into some of the appellant companies’ corporation tax returns, and B’s tax returns for 2011/12 and 2012/13. In addition, HMRC issued information notices and penalties to some of the
