BJH Building and Plumbing v Commissioners for Her Majesty's Revenue and Customs
Decision date: 9 February 2010
Neutral citation: [2010] UKFTT 60 (TC)
Overall AI summary confidence: medium
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: medium
This appeal concerned an application for a closure direction under TMA 1970 s12B(5) in relation to a 2006/07 partnership return. The Tribunal found HMRC had validly opened the enquiry and had reasonable grounds to continue it given apparent inconsistencies in invoices and purchases, so it refused the closure application. The Tribunal also declined to order closure within a specified period because timing for obtaining further evidence was uncertain.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
The Tribunal’s decisive ratio is that a closure direction will not be granted where the Tribunal is satisfied HMRC has reasonable grounds to continue an enquiry; HMRC’s pursuit of underlying records and further enquiries in those circumstances falls within s12AC(4). The Tribunal also indicated that a minor defect in HMRC’s statutory citation (omission of a subsection letter) did not invalidate the enquiry where the substantive notice was correct and no timely objection was made.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The notes record non-binding observations that an applicant for a closure notice could tell HMRC they will not answer further questions pending the Tribunal hearing, and that HMRC’s practice of requesting limited documents initially and expanding the scope if warranted (per COP11) may bear on the reasonableness of further enquiries.