HMRC can request or even demand data from taxpayers in different ways, the most common being known as ‘Schedule 36’ notices. Those powers are not open-ended or unfettered and there are several points to consider.
The interaction between rights, powers, safeguards, self-assessment enquiries, discovery and the ‘Information and Inspection powers’ in Schedule 36 is complex and often spreads beyond the UK, for example if HMRC is interested in the beneficiary of an overseas Trust. Any information notice should be taken seriously and the case worked with expert input from an experienced specialist who is skilled in the complexities of what HMRC can and cannot demand depending on the underlying circumstances. It is of course not black and white, it may be that HMRC cannot strictly demand the data requested but it is advisable to provide it or compliance with an informal notice is the best option; it is always a judgement call that an experienced specialist is best placed to help with.
To find out more, please get in touch with a member of Crowe’s Tax Resolutions team or your usual Crowe contact.
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