Request for Data by HMRC

Question 1

You are a CTA member, called by HMRC with a request for information regarding of potentially serious matter concerning your client’s tax affairs?

Answer 1

Consider asking HMRC to put the request in writing

Question 2

Schedule 36 FA does what?

Answer 2

Allows HMRC to inspect a client’s business premises
Allows HMRC to request data from a taxpayer within a given timescale

Question 3

You have ceased to act for a client, you have now received an informal request from HMRC for information relating to the client?

Answer 3

You should refer HMRC to the client, or if authorised to do so, their adviser

Question 4

What two issues should you consider when considering whether to comply with an informal information request on behalf of a client?

Answer 4

Ask HMRC to put it in writing
Whether your client has authorised the routine disclosure of the relevant data

Question 5

In what circumstance can you respond to an informal request from HMRC on behalf of a client without their consent?

Answer 5

The engagement letter authorises the type of disclosure in question

Question 6

In assisting a client when deciding how to respond to a formal request for information from HRMC, which two issues should a CTA advise on?

Answer 6

The right of appeal against the request
The consequences of a failure to comply with the request

Question 7

When does legal professional privilege arise?

Answer 7

Arises under common law to protect a party’s right to communicate in confidence with a legal adviser

Question 8

A letter from a tax adviser to a client, written in preparation for their forthcoming appearance in court (where they will be represented by a barrister), will be subject to which form of legal privilege?

Answer 8

Litigation privilege

Question 9

Is it ever possible for legal professional privilege to apply to documents created by a tax adviser who is not a lawyer?

Answer 9

This is possible if the documents are created in contemplation of litigation

Question 10

Can you proceed to give information to HMRC (informal request) if it has been authorised in the EL to disclose routine information?

Answer 10

Yes, without client consent

Question 11

What does schedule 36 fa 2008 allow HMRC to do?

Answer 11

Allows HMRC to require a taxpayer and/or third party to provide data reasonably required to check the taxpayer’s tax position within a specified time.

HMRC can also inspect business premises and remove / copy data.

Question 12

What action is recommended where a member receives an informal request from HMRC, and the member is no longer acting for the client?

Answer 12

The member is subject to a duty of confidentiality so the member should refer HMRC to the former client