UKFTT 19 (2010) Khan and others v HMRC

Closure notices - HMRC won

Case Summary:

The taxpayers wanted HMRC to issue closure notices. Several of the individuals investigated had not received a s9A TMA 1970 notice but were being investigated under COP 9 and the wider investigatory powers of s20 TMA 1970 were in use (now replaced by Sch 36 FA 2008). Therefore no closure notice could be issued for these cases.

For those who did have enquiry notices Dr Branigan of HMRC explained that serious fraud was suspected. A chance to make a full disclosure had been offered but the response did not accord with information held by HMRC. A VAT assessment charging £2.8m plus interest had been issued and direct tax implications had still to be sorted. The closure notice applications were refused.