Beware the pitfalls of an Information Notice, warns Salman Anwar.
HMRC has numerous powers to conduct enquiries or make assessments, but the reality is that HMRC requires evidence to come to their conclusions and that evidence comes in the shape of documents and information. The powers contained in Schedule 36 of the Finance Act 2008 are HMRC’s primary weapon for evidence gathering. HMRC can demand the evidence from the taxpayer (through a taxpayer notice) or from a third party (through a third party notice), together referred to as ‘information notices’, but there are strict limitations on what they can demand.
Download the full article at the link below.