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Information notices. Burden of proof that information and documents are reasonably required can shift from HMRC to the taxpayer

By Mark McLaughlin, February 2022

Once HMRC had explained to the Tribunal why information and documents were required, it was for the taxpayer to indicate why the information request or document was not reasonably required, and statutory records must be relevant to the issues that prompted the enquiry and be capable of enabling the HMRC officer to check the tax position.

HM Revenue and Customs (HMRC) received a risk assessment about the appellant company (MIS) from colleagues in HMRC who had identified some issues from MIS’s statutory accounts, indicating a possible risk of loss of tax. HMRC opened an enquiry into MIS’s corporation tax return to 31 March 2015, and into its VAT for various periods. HMRC requested information and documents, and subsequently issued information notices (under FA 2008, Sch 36). MIS appealed.

The issues for the First-tier Tribunal (FTT) included whether: (1) it was for HMRC to show the requirements of FA 2008, Sch 36, para 1 were met before

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