.png)
.png)
Frustrated by the piecemeal approach that they had adopted hitherto, HMRC applied for consent to serve notices under FA 2008, Sch 36 para 5 on 308 financial institutions, seeking information about customers with UK addresses with non-UK bank accounts.
The First-tier Tribunal decision contained interesting background information to these notices. HMRC had been surprised that some 44% of taxpayers who notified under their first offshore disclosure facility were customers of banks other than the five high street banks at which the facility was principally aimed.
Furthermore, 29 of the 50 largest disclosures were from these individuals. Thus the department began applying for consent to serve notice on other financial institutions.
However, HMRC decided it was not possible to continue the process of applying for individual notices and so made the current group application.
HMRC have estimated that from information obtained from the previous notices, 19.3% of cases are likely to result in a tax loss.
The usual arguments were presented against HMRC proceeding. For example, the practical difficulties in complying, the notices were vaguely written without taking into account the financial institutions’ duty of confidentiality, lack of individual consultation.
The tribunal judges disagreed that any of these representations should prevent the issue of the notices and gave approval for the application.
