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Reasonable request
The General Commissioners issued notices requiring the appellants, seven associated companies, to provide certain information relating to their balance sheets under Regulation 10(1) of the General Commissioners (Jurisdiction and Procedure) Regulations 1994. The companies did not comply with the notices, so, at four separate hearings, the Commissioners awarded penalties against them.
Reasonable request
The General Commissioners issued notices requiring the appellants, seven associated companies, to provide certain information relating to their balance sheets under Regulation 10(1) of the General Commissioners (Jurisdiction and Procedure) Regulations 1994. The companies did not comply with the notices, so, at four separate hearings, the Commissioners awarded penalties against them.
The companies appealed saying that the Companies Act 1985 permitted small companies to provide abbreviated accounts, so they could not be required to provide more detailed information for tax purposes.
Mr Justice Park said that the notices had been issued under statutory powers relating to the companies' tax affairs. The Commissioners were justified in requesting the information in order to satisfy themselves that the tax computations were correct. The appellants' arguments were overall invalid.
The appeal failed.
(Salter Ltd and others v Commissioners of Inland Revenue, Chancery Division, 19 November 2002.)
