Generally, any documentary evidence which has been supplied to
you by the taxpayer or his agent is automatically admissible coming
under the general heading of an admission. An admission is a
statement made against his interest by a person or by someone
identified with him. It cannot be suggested that formal proof of
such evidence could be required.
Statements made `without prejudice' during negotiations or
correspondence are not generally admissible unless the party who
made the statement agrees. A statement is expressly without
prejudice when the words `without prejudice' appear as a heading to
a letter or in the body of the text, or as the preface to an oral
statement. If, in the course of a hearing, an appellant or his
agent puts in something which was ‘without prejudice’
you can then make use of that material.
`Implied without prejudice' arises where it is clear from the
surrounding circumstances that the parties were genuinely
negotiating for a settlement. In those circumstances, where the
negotiations break down, the Commissioners can hold that a
statement made during the negotiations is implied without prejudice
and so is not admissible.
You should be very careful over the phrase `without
prejudice' and not use it prematurely. This is particularly
applicable in enquiry cases. Indeed, you may occasionally need to
say expressly that something (for example an interview) is not
`without prejudice'.
