Double jeopardy

Application by a taxpayer for a closure notice

An HMRC officer (L) opened an enquiry into the taxpayer’s 2010/11 return on 25 June 2012. This was because he had obtained information that the taxpayer had not recorded all its sales. He closed it in October 2013 on the basis that the company had understated its profits for the period. L considered it likely that the company had done the same for 2011/12 and issued a discovery assessment. He also imposed penalties for both years.

The taxpayer appealed. Another officer M reviewed the case and concluded the discovery assessment and related penalty should be cancelled.

Shortly afterwards L opened an enquiry into the taxpayer’s 2011/12 return.

The taxpayer applied to the First-tier Tribunal for a closure notice but the tribunal refused.

The taxpayer appealed to the Upper Tribunal.

Mrs Justice Rose said M had concluded in his...