Application to attend hearing for approval of Sch 36 notices

HMRC opened enquiries into the corporation tax returns of the taxpayers. It suspected cash may have been extracted from the companies and wished to examine the financial position of the directors and their spouses.

The department applied to the First-tier Tribunal to approve the issue of notices under FA 2008 Sch 36 to many individuals for information about personal bank accounts credit card accounts land property and other investments. 

The taxpayers’ and individual third parties’ adviser asked HMRC to notify them of the time and date of any hearing so that they could attend and make representations as to why approval should not be granted. HMRC refused but wrote to the individuals giving them an opportunity to make written representations. 

At the tribunal hearing Judge Poole said the issues were similar to those in Mr E and three corporate clients (TC6754). He adopted the reasoning of...