Jonathan Hitchins & Ors. v The Commissioners for HMRC
Decision date: 16 February 2023
Neutral citation: [2023] UKFTT 127 (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
This case concerns three brothers who applied under s28 TMA for directions that HMRC issue closure notices following enquiries into a £40m dividend and related offshore structures. The Tribunal found HMRC had misinterpreted shareholder records, that the Settlement had appointed the funds to others and there was no evidence the applicants received undisclosed benefits, and that HMRC's outstanding enquiries were speculative. The Tribunal directed HMRC to issue closure notices within six weeks.
Ratio decidendi
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AI confidence in this ratio decidendi summary: high
A s28 direction for closure should be granted unless HMRC can demonstrate reasonable, evidence-based grounds for keeping enquiries open; speculative, fishing or factually undermined enquiries (for example where a critical factual misunderstanding by an officer is shown) are insufficient to justify refusal.
Obiter dicta
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AI confidence in this obiter dicta summary: medium
The Tribunal noted that closure notices can be issued in broad terms though this is not the norm, and observed that HMRC’s persistence in an investigatory view despite evidence to the contrary may weaken its position before the Tribunal.