Facts

“Please let me have a reply to this letter by 18 January 2013.  I am concerned at the length of time taken to progress this enquiry.  If for any reason you are unable to reply within the proposed timescale then please contact me accordingly.”

“… due to SA deadlines due on 31^st January 2013 it will not be possible to reply to your letter until early February.”

Law

“1 (1)     An officer of Revenue and Customs may by notice in writing require a person (“the taxpayer”)—

(a)     to provide information, or

(b)     to produce a document,

if the information or document is reasonably required by the officer for the purpose of checking the taxpayer's tax position.

(2)          In this Schedule, “taxpayer notice” means a notice under this paragraph.

…

6  (1)  In this Schedule, “information notice” means a notice under paragraph 1, 2, 5 or 5A.

(2)     An information notice may specify or describe the information or documents to be provided or produced.

…

7  (1)  Where a person is required by an information notice to provide information or produce a document, the person must do so—

(a)     within such period, and

(b)     at such time, by such means and in such form (if any),

as is reasonably specified or described in the notice.

…

29   (1)   Where a taxpayer is given a taxpayer notice, the taxpayer may appeal against the notice or any requirement in the notice.

…

32 (1)   Notice of an appeal under this Part of this Schedule must be given—

(a)     in writing,

(b)     before the end of the period of 30 days beginning with the date on which the information notice is given, and

(c)     to the officer of Revenue and Customs by whom the information notice was given.

(2)     Notice of an appeal under this Part of this Schedule must state the grounds of appeal.

(3)     On an appeal that is notified to the tribunal, the tribunal may—

(a)     confirm the information notice or a requirement in the information notice,

(b)     vary the information notice or such a requirement, or

(c)     set aside the information notice or such a requirement.

(4)     Where the tribunal confirms or varies the information notice or a requirement, the person to whom the information notice was given must comply with the notice or requirement—

(a)     within such period as is specified by the tribunal, or

(b)     if the tribunal does not specify a period, within such period as is reasonably specified in writing by an officer of Revenue and Customs following the tribunal's decision.

(1)        HMRC’s conduct was wholly unreasonable.  A point of principle was involved.  HMRC routinely issue information notices during enquiries to put pressure on taxpayers and their agents, but HMRC themselves do not answer queries.  It was a hideous organisation and Mr Parker’s firm had made 17 formal complaints to HMRC in May alone concerning unanswered correspondence.  It was disappointing that the Inspector who raised the Notice had not attended the hearing to explain his actions or answer questions.

(2)        It was accepted that the details requested by the Notice were relevant to the enquiry but the Notice had been issued too soon.  The 5 December letter requesting the information had not been ignored; a reply had been sent on 10 January asking for more time because of the January self-assessment compliance rush.  It was unnecessary and unreasonable to have then issued the Notice on 25 January.  Any earlier delays were due to workload of the accountants and also Mr Deegan’s business commitments.

(3)        The material demanded by the Notice had been compiled and was ready to submit, but had not yet been sent while this appeal was pending.  The Notice should be withdrawn

HMRC’s Case

(1)        During the enquiry there had been a history of delays in supplying information.  It had been necessary to issue formal notices earlier in the enquiry. The Inspector was required to obtain the consent of his manager before issuing the Notice, and they had both felt it was justified.

(2)        The accountants had said the information could be produced in February, after the January busy period.  The compliance date of 28 February in the Notice was to allow for that situation. 

(3)        From the case file it appeared that there was no delay longer than one month on the part of HMRC in dealing with correspondence.

Consideration and Conclusion

Decision

PETER KEMPSTER

TRIBUNAL JUDGE

RELEASE DATE:  7 June 2013