Authorised agent

Notice of enquiry into taxpayer’s return sent to agent

HMRC opened an enquiry into the taxpayer’s 2003-04 tax return. It later issued a closure notice disallowing a loss claimed in the return. The taxpayer appealed against the notice saying it was invalid because he had never been told that the enquiry was being opened.

HMRC disputed this saying it had posted the notification letter to him and had sent a copy of it to BDO his accountants.

The First-tier Tribunal dismissed the taxpayer’s appeal.

In the Upper Tribunal the judges said there was no dispute that BDO had received a copy of the notice of enquiry with a covering letter. Further there was no doubt it had acted as the taxpayer’s agent as stated on form 64-8. On BDO’s authority to receive notice of the enquiry on behalf of the taxpayer the Upper Tribunal...