Harold Hugh Collinson v Commissioners for Her Majesty's Revenue and Customs
Decision date: 13 April 2010
Neutral citation: [2010] UKFTT 165 (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 an application by Harold Collinson for a direction that HMRC issue a closure notice in relation to his 1998–99 self‑assessment after an enquiry opened on 5 January 2001 remained unresolved. The Tribunal found HMRC had not shown objectively reasonable grounds for continuing the enquiry, noting HMRC had not used statutory or Tribunal powers to obtain withheld privileged "Tax Advice Material" and that the taxpayer had been cooperative. The Tribunal directed HMRC to issue a closure notice stating its conclusions within 30 days (by 7 February 2010).
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
Where an enquiry has been open for an extended period, the Tribunal will direct issuance of a closure notice unless HMRC can show objectively reasonable grounds to continue the enquiry; reliance on withheld material as a basis for delay is undermined if HMRC has not exercised available statutory or Tribunal powers to obtain that material.
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 judgment contains observations on the relevance of Article 6 ECHR and the Tribunal Rules' overriding objective (avoidance of undue delay), practical points about drafting closure notices (including that detailed reasons may not always be required), and that taxpayers may properly withhold material claimed to be privileged while HMRC may seek Tribunal processes to challenge privilege.