Kinsella
| Jurisdiction | UK Non-devolved |
| Judgment Date | 10 August 2017 |
| Neutral Citation | [2017] UKFTT 623 (TC) |
| Date | 10 August 2017 |
| Court | First Tier Tribunal (Tax Chamber) |
[2017] UKFTT 0623 (TC)
Judge Jonathan Cannan
Mr Kevin Kinsella appeared in person
Mr Anthony O'Grady of HM Revenue & Customs appeared for the respondents
Procedure – Information notice – FA 2008, Sch. 36 – Information required – Whether reasonably required – Whether sufficiently identified – Appeal dismissed.
[1] This is an appeal against an information notice issued to the Appellant, Mr Kinsella on 12 September 2016 (“the Notice”). The Notice was issued by Mr S O'Keefe, an Inspector of Taxes in the course of an enquiry into Mr Kinsella's self-assessment tax return for 2013–14. It required Mr Kinsella to produce information in relation to entries in Mr Kinsella's bank account as follows:
Your [name of bank] account [xxx/xxxxxxxx] refers.
- Please advise what the deposits described as KTIC Ltd and Kinse UK Ltd relate to.
- Please also let me know the source of the cheque deposits, £250 on 30 May 2013, £2,000 on 7 June 2013, £1,500 on 7 August 2013 and £2,000 on 22 August 2013.
(The name of Mr Kinsella's bank and account number have been anonymised for the purposes of this decision)
[2] On 7 October 2016 Mr Kinsella appealed against the Notice. The grounds of appeal were that it was not within his power or possession to provide the information. Mr O'Keefe rejected the appeal and Mr Kinsella notified his appeal to the Tribunal on 25 November 2016. The grounds of appeal set out in the notice of appeal may be summarised as follows:
- It is unreasonable for HMRC to issue an information notice to provide information which is not available and is not within Mr Kinsella's power or possession to provide.
- The information requested is too vague and does not specify the period it relates to.
[3] At the hearing Mr Kinsella refined his grounds of appeal. He stated that he did not challenge the request for information at item 2 of the Notice. He did challenge the information required at item 1 on the basis that it was too vague. As such he argued that the Notice as a whole was invalid. I consider the parties' submissions and arguments in more detail below.
[4] I can set out the relevant statutory provisions quite briefly. All references are to Schedule 36 Finance Act 2008.
[5] Paragraph 1 provides that an officer of HMRC may by notice in writing require a taxpayer to provide information or documents if reasonably required for the purpose of checking the taxpayer's tax position.
[6] Paragraph 18 provides that an information notice only requires a person to produce a document if it is in the person's possession or power. There is no equivalent provision in relation to information.
[7] Paragraph 29(1) provides for a right of appeal against “the notice or any requirement in the notice”. Paragraph 32 then sets out the procedure for appeals against an information notice, including the jurisdiction of the Tribunal. In particular:
(3) On an appeal that is notified to the tribunal, the tribunal may–
- confirm the information notice or a requirement in the information notice.
- vary the information notice or such a requirement, or
- set aside the information notice or such a requirement.
(4) Where the tribunal confirms or varies the information notice or a requirement, the person to whom the information notice was given must comply with the notice or requirement–
- within such period as is specified by the tribunal, or
- if the tribunal does not specify a period, within such period as is reasonably specified in writing by an officer of revenue and Customs following the tribunal's decision.
(5) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007 a decision of the tribunal on an appeal under this Part of this Schedule is final.
[8] There was no issue in relation to the background facts. For present purposes I find the following relevant facts.
[9] The enquiry into Mr Kinsella's self-assessment return for 2013–14 was commenced by Mr O'Keefe by notice dated 16 December 2015. On the same date Mr O'Keefe also wrote to Mr Kinsella in connection with his return for 2011–12. The letter stated that Mr O'Keefe was aware that Mr Kinsella had disposed of a property in 2011–12 but did not include the disposal in his return. He asked for details of the disposal and a capital gains tax computation.
[10] Mr O'Keefe made an initial request for various items of information and documents in connection with his enquiry into the return for tax year 2013–14. This included details and statements for all bank accounts operated by Mr Kinsella in that year and details in relation to Mr Kinsella's PAYE income and dividend income. On 4 March 2016 Mr Kinsella provided some of the documents and information, including bank statements for 2013–14. Mr Kinsella stated that he operated only one bank account in the relevant period.
[11] The bank statements provided by Mr Kinsella covered the period 18 March 2013 to 7 April 2014. They included entries for the cheque deposits which subsequently comprised item 2 of the Notice (“the Specific Deposits”). There were also a number of deposits by way of bank credits and transfers from KTIC Ltd and Kinse UK Ltd as follows:
Date |
Source |
Amount £ |
19 Aug 2013 |
Kinse UK Ltd |
738.69 |
2 Sept 2013 |
Kinse UK Ltd |
246.23 |
1 Oct 2013 |
Kinse UK Ltd |
246.23 |
2 Oct 2013 |
Kinse UK Ltd |
400.00 |
29 Oct 2013 |
Kinse UK Ltd |
1,031.47 |
1 Nov 2013 |
KTIC Ltd |
246.23 |
5 Nov 2013 |
KTIC Ltd |
343.82 |
2 Dec 2013 |
KTIC Ltd |
246.23 |
5 Dec 2013 |
KTIC Ltd |
343.82 |
20 Dec 2013 |
KTIC Ltd |
1,450.00 |
2 Jan 2014 |
KTIC Ltd |
246.23 |
6 Jan 2014 |
KTIC Ltd |
343.82 |
3 Feb 2014 |
KTIC Ltd |
246.23 |
5 Feb 2014 |
KTIC Ltd |
343.82 |
3 Mar 2014 |
KTIC Ltd |
246.23 |
5 Mar 2014 |
... |
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