Tribunal – Capital Gains Tax and residency
The Tribunal examined an appeal by a taxpayer who had sold shares in a UK company for more than £80 million. The appeal related to the production of documents by the taxpayer. HMRC wished to investigate the residency position of the taxpayer who claimed to have been non-resident for exactly 5 years of assessment.
The taxpayer had provided HMRC with a significant amount of information including detailed schedules which provided information as to his residence position. However, HMRC were not provided with much original documentation and they required this to be able to check the residency position for themselves.
HMRC issued a notice in writing requiring the taxpayer to provide additional information and documents relating to his residence. The taxpayer argued that the obligations imposed by the notice were onerous and unreasonable and that the notice should be discharged.
In his summation, the Tribunal Judge said that “We find that the Taxpayer has not shown as a matter of fact that the information or documents are not reasonably required by the officer for the purpose of checking the taxpayer’s tax position. We also find that the request is not disproportionate or onerous in the particular circumstances of the case.”
The taxpayers appeal was dismissed.