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The claimants purchased shares from the defendants. The claimants said that financial information provided to them before the sale was false and that the shares were worthless.
They alleged that the defendants had behaved dishonestly and successfully applied for an order to seize certain documents from the director of one of the defendants.
HMRC were informed and they sought to carry out an investigation under code of practice 9.
The claimants asked for permission to release documents to HMRC in order to answer various questions relating to the investigation. One of the directors of the defendants argued that this could result in an injustice to him.
The High Court ruled that the claimants should be able to use the disclosed information to answer HMRC’s questions.
No injustice would arise from HMRC seeing the disclosed documents.
