HMRC’s power to conduct an informal investigation

The taxpayer Mr R one of six claimants was UK resident and domiciled and operated supermarket businesses in Spain and Portugal. In June 2016 HMRC began an investigation into his tax affairs although confirmed it had not opened an enquiry under TMA 1970 s 9A. In a letter headed as coming from the Criminal Taxes Unit Civil Compliance it made informal requests for information. The officer said if this was not provided they would issue formal notices under FA 2008 Sch 36. They also contacted the Spanish and Portuguese tax authorities for information.

Mr R said the investigation caused him enormous stress and he had been treated like a criminal. He applied for judicial review challenging the lawfulness of HMRC’s investigation but this was refused. He appealed.

The taxpayer said the High Court had erred in asserting CRCA 2005 s 9(1) empowered...