The provisions of TMA70/S19A(6) enable a taxpayer to appeal
against a notice under TMA70/S19A(2) or TMA70/S19A(2A). Such a
notice requires a taxpayer to produce documents and to furnish
accounts or information required to determine whether, and if so to
what extent, a return (or an amendment to a return) which is the
subject of an enquiry is incorrect (see EM2206).
The appeal must be made within 30 days of the date of issue
of the notice (TMA70/S19A(7)) and must specify the grounds of the
appeal.
An appeal may be brought on all or any of the following grounds.
The right of appeal against the notice for documents or particulars does not provide the taxpayer with the opportunity to raise an objection to our right to enquire into the return.
The normal appeal procedures apply to appeals made under
TMA70/S19A(6) and you should try to settle the appeal by agreement
(see AH0300). If it cannot be resolved by agreement it must be
referred to the Commissioners.
The Commissioners will consider whether the information
required by the notice is, in their view, reasonably required by
you for the purpose of determining whether or not the return is
correct and complete (see below) and may
If the notice (or part of it) is confirmed by the Commissioners,
the taxpayer must comply with it (or the relevant part of it)
within 30 days of the determination of the appeal (TMA70/S19A(10)).
This time limit applies even if a longer period has been specified
in the original notice.
The determination of the appeal by the Commissioners is final
and neither the taxpayer nor HMRC can ask for a case to be stated
in respect of the Commissioners' decision (TMA70/S19A(11).
The taxpayer is not obliged to produce documents, accounts or
particulars relating to the conduct of any pending appeal
(TMA70/S19A(5)). In our view, documents protected by this are only
those which are brought into existence as part of the preparation
for the presentation of an appeal. This view was supported by the
Special Commissioners in the case of Monarch Assurance Co Ltd v CIR
(59TC at p 605) and the point was not argued further in the High
Court.
If the taxpayer asks for more time to comply with the notice you
can, if appropriate, agree a revised time scale for production of
the information (see EM2250). If you have been unable to agree a
revised timetable, you should list the appeal for hearing before
the Commissioners.
At the hearing, you should, for example, ask the taxpayer
what steps he or she has taken to comply with the notice. You
should also ask him or her to give the Commissioners an estimate of
how much more time is needed to enable him or her to fully comply.
The Commissioners have no power to give the taxpayer more
time and if they agree that further time is reasonable, you should
suggest that they grant an adjournment to a future date. This will
have the effect of giving the taxpayer the further time requested.
It will also avoid the only other possible course available to the
Commissioners, which would be to set the notice aside.
