Burden of proof

Information notice under FA 2008 Sch 36 para 1

HMRC issued an information notice under FA 2008 Sch 36 para 1 to several companies that used an avoidance scheme known as the dividend replacement strategy. Uppercut was the lead appeal. The scheme had been disclosed under the disclosure of tax avoidance schemes regime in 2011.

The taxpayer appealed against the notice. It claimed the decision to issue it had been wrong in fact and law. None of the documents required had any bearing on its corporation tax position. Further HMRC should not be allowed to use the notice to circumvent the tougher requirements in Sch 36 para 2 and 3 to obtain the tribunal’s approval for a third-party notice. Finally the burden of proof lay with HMRC to show the officer reasonably required the information.

The First-tier Tribunal considered each document required in the notice. On...