Failure to comply with promoter information notices

A Channel 4 Dispatches programme called ‘How the rich avoid tax’ was aired in February 2016. It featured an undercover actor purportedly discussing tax avoidance with the managing director of the taxpayer. 

Having watched the programme HMRC suspected the taxpayer was acting as a promoter of remuneration trust schemes under FA 2004 s 306 to s 307. In August 2016 it issued three information notices under FA 2004  s 313C. 

The taxpayer complied with part of the second notice and the third but not the first. HMRC applied to the First-tier Tribunal for penalties to be applied. The taxpayer objected. 

The issues for the tribunal were: whether the penalties were criminal for the purposes of the European Convention on Human Rights art 6; whether the preconditions in s 313C had been met; and whether HMRC could issue more than one penalty notice.

The tribunal concluded that...