Although the taxpayer in Haworth had his follower notice quashed, the Supreme Court and Court of Appeal found that a defective notice from HMRC was not invalid. Even if a notice ‘must’ contain information, if it doesn’t that won’t necessarily make it invalid. If it cannot be said that Parliament intended total invalidity to result from a defective notice, it will depend on the circumstances and whether the taxpayer is prejudiced. This is similar to the statutory saving provision in TMA 1970 s 114 for some types of defective assessments or notices. However, it is still worth checking all HMRC notices carefully.
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Although the taxpayer in Haworth had his follower notice quashed, the Supreme Court and Court of Appeal found that a defective notice from HMRC was not invalid. Even if a notice ‘must’ contain information, if it doesn’t that won’t necessarily make it invalid. If it cannot be said that Parliament intended total invalidity to result from a defective notice, it will depend on the circumstances and whether the taxpayer is prejudiced. This is similar to the statutory saving provision in TMA 1970 s 114 for some types of defective assessments or notices. However, it is still worth checking all HMRC notices carefully.
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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