(1)Shahzad Haroon Khan (2)Fasal Haroon Khan (3)Qaiser Haroon Khan (4)Sohail Shazad(5)Xtec Communications Limited(6)Pak UK Tv Limited (7)Xtec Retail Limited(8)Newtron Marketing Limited(9)Alma Communications Limited(10)Bridge Woods Exporters Limited(11)Global 2000 Corporation Limited(12)Prime Plus Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 21 December 2009
Neutral citation: [2010] UKFTT 19 (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
Appellants sought Tribunal directions requiring HMRC to issue closure notices under TMA/para 33 Sch 18, arguing certain 11 March 2008 letters were s.9A (or paragraph 24) notices. The Tribunal held those letters were not valid s.9A/paragraph 24 notices, that it has no power to direct closure where an enquiry was not begun by s.9A, and that for the four appellants who had valid s.9A/paragraph 24 notices there were reasonable grounds to refuse closure given ongoing linked investigations; all applications were dismissed (with leave to reapply or seek permission to appeal).
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
The Tribunal treated as dispositive that its power to direct issue of a closure notice under TMA/para 33 Sch 18 arises only where the enquiry was commenced by a s.9A (or corporation tax equivalent) notice. A written s.9A notice need not adopt the exact statutory words but must clearly indicate the officer’s intention to enquire into specified returns and identify the relevant dates/windows; wholly general language is insufficient.
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 (obiter) that officers may act under other powers before a return is made, that COP9 investigations are a distinct process from s.9A enquiries with different legal consequences, and that the Tribunal cannot compel an officer to issue a s.9A notice.