HMRC had adequate information to issue closure notices

The taxpayers were members of an international group which traded energy and commodities globally. In the course of discussions on agreeing a new advance pricing arrangement HMRC opened enquiries into the companies’ returns for the three years ended 31 December 2018. It also issued diverted profits tax charging notices to two of the companies for the two years ended 31 December 2017.

The companies applied to the First-tier Tribunal for a direction to issue closure notices. HMRC opposed the application saying the companies had not provided information required to formulate the closure notices.

The tribunal found HMRC had made an informed decision on the matters under enquiry had set out its conclusions and also the basis on which amendments could be made to the returns before it issued the request for information. The continuing queries for which HMRC requested additional material did not comprise reasonable grounds for...