Martin Horsler v The Commissioners for HMRC
Decision date: 17 June 2024
Neutral citation: [2024] UKFTT 561 (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 Schedule 36 information‑notice penalties imposed on Martin Horsler for failing to provide documents about an outstanding loan and related "Sunrise" transactions for 2018/19. The First‑tier Tribunal found the notice valid, concluded HMRC made a prima facie case that the outstanding documents were in Horsler’s possession or power, rejected his claimed reasonable excuses, and dismissed the appeal, upholding the penalties. The decision leaves open 56 days for permission to appeal to the Upper Tribunal.
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
From the judgment the tribunal applied and endorsed the propositions that a Schedule 36 notice may properly be issued to investigate an individual’s tax position even where related company assessments exist unless HMRC has formed a definitive view on the individual; that documents are within a taxpayer’s "power" if the taxpayer can obtain them from third parties without great expense; and that HMRC can establish a prima facie case of possession/power which the taxpayer must rebut with credible evidence of inability to obtain the documents.
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 promotional or marketing material will not always be "reasonably required" to check a tax position, though it can be relevant to motive or state of mind in particular contexts, and that taxpayers seeking documents from third parties should make clear written requests, follow up, and properly address any refusals.