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In X Ltd, Y Ltd, Z Ltd and 17 individuals v HMRC [2020] UKUT 0029 (TCC), the Upper Tribunal (UT) confirmed that it would be fruitless for the tribunal to consider a taxpayer's applications for a closure direction. HMRC was actively investigating and had issued notices to third parties requiring further information. It also confirmed that the First Tier Tribunal (FTT) does have the authority to order an ex parte hearing to heard in public.

The FTT decided that the Schedule 36 Notice trumped the Closure Application and decided that they had no powers to allow the taxpayers’ to attend the Schedule 36 notice hearing.

The taxpayers appealed to the UT.

The UT considered that:

The UT remade the FTT’s decision so as to lead to the same overall result. The Schedule 36 Application is to be heard in private.

Links to our subscriber guides:

Closure Notices
When does HMRC issue a closure notice? Can a taxpayer demand one? Are there appeal rights?

How to appeal an HMRC decision
What type of decision is appealable? What are your different options when you disagree with HMRC? What are the key steps in making an appeal?

Third Party Information Notices
When can HMRC require a third party to provide information or produce a document in relation to a taxpayer? Who can appeal a notice? What rights does the taxpayer have?

External link

X Ltd, Y Ltd, Z Ltd and 17 individuals v HMRC  [2020] UKUT 0029 (TCC)