Information notice was validly issued

In July 2021 HMRC issued a notice to provide information under F(No 2)A 2017 Sch 16 para 40 and FA 2008 Sch 36 to the taxpayer whom it suspected had been an enabler of abusive tax arrangements involving remuneration trusts using fiduciary receipt arrangements.

The taxpayer appealed saying it was not an enabler. Further the demand for information was an abuse of process and the notice was contrary to Article 6 of the European Convention on Human Rights (ECHR) because it infringed the taxpayer’s right against self-incrimination.

The First-tier Tribunal said that viewed objectively the relevant HMRC officer did have reason to suspect that the taxpayer might be liable to an enabler penalty. There were arrangements in place where the gaining of a tax advantage was at least one of the main purposes. It seemed probable that HMRC would challenge these arrangements and they might be...