Conditional compliance rejected

Information notices issued under FA 2008 Sch 36

HMRC opened enquiries into the taxpayer. It issued information notices under FA 2008 Sch 36 with which the taxpayer failed to comply. As a result HMRC issued penalties. The taxpayer appealed against the notices and the penalties. It offered to allow HMRC to inspect its records as long as no copies of electronic records were taken limited copies of paper records were made and HMRC gave an undertaking on confidentiality and data protection. The taxpayer also stated that it wished to film the HMRC officers during the inspection.

The First-tier Tribunal said the taxpayer had no entitlement to set limits on HMRC’s rights to copy documents when inspecting them. The department had ‘unlimited rights’ and it was difficult to see how it could carry out its job otherwise. Further HMRC was entitled to ask for electronic copies...