Information powers
HMRC is providing a new framework of aligned powers for PAYE, VAT, Income Tax, Capital Gains Tax and Corporation Tax. It includes the following elements.
A power to:
- require taxpayers to provide information and produce documents
- require third parties (for example a supplier or bank) to provide information and produce documents
The recipient has the protection of a right of appeal or prior approval by an independent tribunal.
There is no right of appeal if the information or documents relate to records the person must keep for tax purposes (statutory records).
HMRC will normally ask for information and documents rather than use powers.
The majority of people will co-operate fully when asked for information and documents. However, if they do not, an officer may use the above powers to obtain them.
HMRC can require a person to provide them with information and produce documents by way of a written notice called an information notice.
