In Tallington Lakes Ltd v HMRC (and related appeal) (TC01257 – 13 July) HMRC began an enquiry into the returns submitted by two associated companies (one of which owned a large caravan site).
The companies failed to comply with notices under FA 1998 Sch 18 para 27 and HMRC imposed penalties of £5 150 on each company under Sch 18 para 29.
The companies appealed contending that they were unable to comply with the notices because they were unable to retrieve the requisite records from their former accountant.
The First-Tier Tribunal rejected this contention and dismissed the appeals.
Judge Tildesley observed that ‘the appellants as a matter of law are prevented from questioning the contents of the notices for production in penalty proceedings.
The appellants had their opportunity to challenge the notices in their appeal before the General Commissioners.
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