AH3705 - Regulation 10 Notices - Issue of a Regulation 10 notice by the General Commissioners

Forms 79 and 79A are provided for use where a formal notice is to be issued by the General Commissioners under Regulation 10. (See AH3701 on when to ask for the issue of such a notice).

Form 79 is for use when the notice is to be issued under Regulation 10(1)(a) and form 79A when it is to be issued under Regulation 10(1)(b). Take care to ensure that the proper forms are used and that each form is correctly completed and signed before it is issued. This is particularly important where there may be some failure to comply with the notice and the possibility of penalty action is envisaged. The requirements of the notice should not go beyond what is reasonably required for the purposes of determining the issue in question. For example, in connection with an appeal against an assessment made on a company, information cannot be demanded about the personal investments or books of account of the directors.

Form 79 - ‘Particulars’ Regulation 10(1)(a)

The ‘particulars’ required under Regulation 10(1)(a), are to be delivered to the Commissioners, not the relevant HMRC office. The wording is regarded as giving the Commissioners power to call for trading and profit and loss accounts and balance sheets. See in this connection:

Grahamston Iron Co v Crawford, 7TC25;

T Haythornthwaite and Sons Ltd v Kelly, 11TC657;

Hunt & Co v Joly, 14TC165 and

Beach v The Willesden General Commissioners and CIR, 55TC663).

Form 79A - Books, Accounts and Other Documents’ Regulation 10(1)(b)

There is no obligation to deliver ‘books, accounts’ and/or documents required under Regulation 10(1)(b). The recipient of the notice must simply make them available for inspection by the Commissioners or by an officer of Revenue & Customs.

Regulation 10(2) authorises the inspection and the copying by any officer of Revenue & Customs of the material supplied or made available under Regulation 10(1).

Partnerships

In England, Wales and Northern Ireland, a notice directed to the affairs of a partnership may be addressed to any of the partners but, in practice, it should be addressed to the precedent acting partner. In Scotland, a notice directed to the affairs of a partnership should be addressed to the firm.