Clarity and reasonableness of information notices

HMRC issued data-holder notices (FA 2011 Sch 23) requiring details of payments made by the taxpayer to third parties for the introduction of clients. The taxpayer appealed on the ground the notices were unclear.

The First-tier Tribunal did not accept the taxpayer’s claim that complying with the notices would be ‘unduly onerous’ because they were ‘too vague and difficult to understand’. It said the notices were not worded ‘as clearly and grammatically as they could be’ but this did not make them unduly onerous to comply with. The tribunal said the wording was clear enough to any recipient and contained no ambiguity.

On the taxpayer’s concerns about client confidentiality the tribunal said a data-holder notice overrode that duty. It referred in support to the decision in Wilsons Solicitors (TC6778).

The appeals against the Sch 23 notices were dismissed.

Three other companies appealed against information notices (FA 2008 ...