EWHC 3321 (2009) Demand & Supply Cash & Carry Ltd & Anor v HMRC

Judicial Review of removal of computers during an inspection - HMRC won

Case Summary:

In an Excise Duty Inspection HMRC removed 25 computers. On judicial review this was held to be within the rules. A computer was a document and documents could be removed.

“Section 114 (2) of the Finance Act 2008 expressly expands the meaning of “document” to include anything in which information of any description is recorded, an expansion that is plainly broad enough to cover the hard drive of a computer. In any event there is a welter of authority, from different contexts, where the expression “document” has been interpreted to include a computer (see, for example, R v The Commissioners of Customs and Excise (ex parte Bottlestop) [1997] EWHC Admin 467 at paragraph 16; and cf CPR 31.4.1).”

As the inspection rules for direct tax and VAT are similar this means that computers could be removed during an inspection of business premises and documents under the rules in Schedule 36 FA 2008.