Metropolitan International Schools: Record Decision

The First-tier Tribunal case of Metropolitan International Schools Ltd [2021] UKFTT 438 (TC) was to do with the issue by HMRC of statutory notices seeking information to facilitate an enquiry into the company's affairs.  The decision contains some interesting observations of general application; though some do seem to be mutually contradictory.

Take the burden of proof, for example.  Except (possibly) in the case of 'statutory records', to which we return below, a notice may require production of information and documents that are 'reasonably required by the officer for the purpose of checking the taxpayer's tax position'.  The Tribunal expresses the view (surely correctly) that it is for HMRC to demonstrate that the conditions for issuing the notice are satisfied; and that the test is an objective, not a subjective one.  In other words the burden lies upon HMRC to show that the information is 'reasonably required'.  So far, so good.