In cases where HMRC seeks information or documents from a taxpayer or third party it needs to establish that the information is ‘reasonably required’ for the purpose of checking a taxpayer’s tax position (FA 2008 Sch 36 paras 1 2 and 5).
Taxpayers’ fears about the extensive reach of the new powers were confirmed early in their history when HMRC obtained third party notices against a number of financial institutions seeking information or documents on customers with UK addresses and non-UK bank accounts (Applications to serve a Notice under FA 2008 TC00148 & TC00149). Objections that the production requirement was too onerous and absence of serious prejudice to the assessment or collection of tax were robustly overridden by the First-tier Tribunal (FTT).
A taxpayer can appeal against an information notice where it does not relate to information or documents forming part of his statutory records...
