Papers, please

HMRC opened an enquiry into the taxpayer’s 2005/06 and 2007/08 tax returns; the window for 2006/07 had closed.

The department made informal requests for information for all three years asking for certificates of interest for bank and building society accounts and a breakdown of self-employment income and expenses.

In relation to 2006/7 the Revenue said it had reason to believe the taxpayer had received building society interest that had not been included in her self-assessment return; the department asked for certificates of interest.

The taxpayer replied she had received compensation under a court order that had wrongly been treated as taxable. She did not provide the requested documents; HMRC issued a notice under FA 2008 Sch 36 para 1.

The taxpayer appealed saying she was due a rebate rather than being liable to further tax.

The First-tier Tribunal said the...