Surat Singh Sangha v The Commissioners for HMRC
Decision date: 27 June 2024
Neutral citation: [2024] UKFTT 564 (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 appeal concerned an HMRC information notice issued to Mr Surat Singh Sangha under Schedule 36, TMA, seeking various documents relating to his 2015–16 and 2016–17 tax affairs. The First-tier Tribunal found HMRC had open enquiries for those years, accepted officer evidence (including para 20 authorised-officer approval for older documents), held HMRC bear the burden of showing requested material is "reasonably required", set aside five items in the Notice and varied others to a limited scope, and directed compliance within 30 days (with a limited deferred compliance mechanism for part of one item).
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
The Tribunal identified two binding propositions from the decision: (1) where HMRC relies on Schedule 36 para 20 to require documents older than six years, post‑hearing evidence of authorised‑officer approval may be admitted and can cure a procedural irregularity; and (2) in appeals against Schedule 36 information notices, HMRC carry the burden of establishing that each requested document or piece of information is reasonably required to check the taxpayer’s tax position.
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 (not as binding ratio) that in a video hearing it can be appropriate to require a witness statement rather than ad hoc handing up of documents, and that statutory preservation periods for records continue to run (they are not frozen at the date of an information notice), so HMRC should show notices to file if relying on extended preservation under TMA s12(1)(b).