HMRC was not precluded from asking questions in an investigation by the fact that a formal enquiry had not been opened into the taxpayer’s tax affairs.

Summary

HM Revenue and Customs (HMRC) was not precluded from asking questions in an investigation by the fact that a formal enquiry had not been opened into the taxpayer’s tax affairs.

Background

The fourth claimant (BR), a successful businessman, was both UK resident and UK domiciled. The other claimants were corporate entities in which BR was beneficially interested. 

In the early 1990s, BR opened a supermarket in Tenerife importing UK food to sell to the expat community. The business grew significantly. The fifth claimant was incorporated in Spain and was concerned in the operation of the business in Spain. The sixth claimant was incorporated and operated in Portugal. The first to third claimants were incorporated in the UK.