Gareth Evans v The Commissioners for HMRC
[2023] UKFTT 869 (TC)
The Commissioners for HMRC v Third Party
19 January 2023
[2023] UKFTT 71 (TC)
First-tier Tribunal
HMRC wanted information from the taxpayer's solicitor about some property deals to check if the taxpayer was paying the right amount of tax. The solicitor said they couldn't give the information because it was private. The judge decided that the information was important for tax purposes and that HMRC could get it from the solicitor, even though some of it was private.
Key Facts
- •HMRC applied for an information notice under Schedule 36, Finance Act 2008, to a firm of solicitors (Third Party) in Northern Ireland.
- •The notice sought information relating to two property transactions involving the Taxpayer: the purchase of Property 2 and the sale of Property 3.
- •The Third Party claimed legal professional privilege and Article 8 ECHR rights.
- •The Taxpayer claimed HMRC's actions were heavy-handed and had damaged their reputation.
- •HMRC suspected the Taxpayer had not fully disclosed worldwide assets and income, particularly those held through offshore trusts.
Legal Principles
Information Notice Approval
Schedule 36, Finance Act 2008, paragraph 3
Legal Professional Privilege
Schedule 36, Finance Act 2008, paragraph 23; Information Notice: Resolution of Disputes as to Privileged Communications Regulations (SI 2009/1916)
Article 8, European Convention on Human Rights
Human Rights Act 1998
Data Protection Act 2018
Data Protection Act 2018; UK GDPR
Commissioners of Revenue and Customs Act 2005
Section 18, Commissioners of Revenue and Customs Act 2005
Outcomes
HMRC's application for the information notice was granted.
The Tribunal found that HMRC had reasonable grounds to suspect the Taxpayer had not fully declared income and assets, the information sought was reasonably required, and the request was proportionate. Claims of legal professional privilege and Article 8 ECHR rights were addressed. The Tribunal also addressed concerns about the Taxpayer's representation regarding HMRC's actions being heavy-handed.