David Hackmey v The Commissioners for HMRC
Decision date: 6 April 2022
Neutral citation: [2022] UKFTT 160 (TC)
Overall AI summary confidence: high
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: high
HMRC issued a Schedule 36 information notice to Mr Hackmey seeking various bank, card and trust documents for 2013–2017. The First-tier Tribunal held HMRC had reasonable grounds to require details of trusts of which Mr Hackmey was a beneficiary (Item 11) because of links to UK property projects, but did not have continuing reasonable grounds for the other contested intrusive banking and card material (Items 1–10), which were set aside. The Tribunal assessed HMRC’s suspicion in light of material disclosed after the Notice and required a clear connection between the documents sought and the suspected tax issues.
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: high
An information notice under Schedule 36 must rest on objective evidence giving reasonable grounds to suspect a tax insufficiency and there must be a clear, proportional link between the documents sought and that suspicion; where HMRC has received substantial disclosures, it must explain why further intrusive unredacted financial material remains necessary. Information about discretionary trust beneficiaries can be reasonably required where evidence links those trusts to UK property projects and potential taxable consequences.
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 Tribunal observed (non-bindingly) that the threshold for "reason to suspect" is low but still demands objective evidential basis, that routine HMRC practice alone does not justify intrusive requests, and that information notices should be tailored or revised as HMRC’s focus changes after disclosed material.