Taxes Management Act 1970

20 [Power to call for documents of taxpayer and others. U.K.

(1) Subject to this section, an inspector may by notice in writing require [a person—

(a) to deliver to him such documents as are in the person’s possession or power and as (in the inspector’s reasonable opinion) contain, or may contain, information relevant to—

(i) any tax liability to which the person is or may be subject, or

(ii) to the amount of any such liability, or

(b) to furnish to him such particulars as the inspector may reasonably require as being relevant to, or to the amount of, any such liability F1 .]

(2) Subject to this section, the Board may by notice in writing require [a person—

(a) to deliver, to a named officer of the Board such documents as are in the person’s possession or power and as (in the Board’s reasonable opinion) contain, or may contain, information relevant to—

(i) any tax liablity to which the person is or may be subject, or

(ii) to the amount of such liability, or

(b) to furnish to a named officer of the Board such particulars as the Board may reasonably require as being relevant to, or to the amount of, any such liability F1 ].

(3) Subject to this section, an inspector may, for the purpose of enquiring into the tax liability of any person (“the taxpayer”), by notice in writing require any [other person F1 ] to deliver to the inspector or, if the person to whom the notice is given so elects, to make available for inspection by a named officer of the Board, such documents as are in his possession or power and as (in the inspector’s reasonable opinion) contain, or may contain, information relevant to any tax liability to which the taxpayer is or may be, or may have been, subject, or to the amount of any such liability[; and the persons who may be required to deliver or make available a document under this subsection include the Director of Savings F2 .]

(4) The persons so subject are—

(a) the taxpayer’s spouse, and any son or daughter of his;

(b) in so far as the inspector’s enquiries relate to liability of the taxpayer in respect of income, profits or gains that were, or may have been, derived from—

(i) any business (past or present) carried on by the taxpayer or his spouse, or

(ii) any business (past or present) with whose management either of them was concerned at a material time,

any person who is carrying on a business, or was doing so at a material time, [any company, whether carrying on a business or not, and the Director of Savings]

F3 F4 (5) For the purposes of subsection (4) above, every director of a company is to be taken as being concerned with the management of any business carried on by the company; and a material time is any time which (in the inspector’s reasonable opinion) is, or may have been, material in the ascertainment of any past or present tax liability of the taxpayer F4 .

(6) The persons who may be treated as “the taxpayer” [for the purposes of this section F5 ] include a company which has ceased to exist and an individual who has died;and in relation to such an individual the references in subsection (4) to the spouse are then instead to the widow or widower (the circumstances that she or he may have re-married being immaterial for the purposes of those subsections)F4 .

(7) Notices under [subsection (1) or (3) above F3 ] are not to be given by an inspector unless he is authorised by the Board for its purposes; and—

(a) a notice is not to be given by him except with the consent of a General or Special Commissioner; and

(b) the Commissioner is to give his consent only on being satisfied that in all the circumstances the inspector is justified in proceeding under this section.

[(7A) A notice under subsection (2) above is not to be given unless the Board have reasonable grounds for believing—

(a) that the person to whom it relates may have failed or may fail to comply with any provision of the Taxes Acts; and

(b) that any such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax F6 .]

[(8) Subject to subsection (8A) below, a notice under subsection (3) above shall name the taxpayer with whose liability the inspector (or, where section 20B(3) applies, the Board) is concerned F5 .]

[(8A) If, on an application made by an inspector and authorised by order of the Board, a Special Commissioner gives his consent, the inspector may give such a notice as is mentioned in subsection (3) above by without naming the taxpayer to whom the notice relates; but such a consent shall not be given unless the Special Commissioner is satisfied—

(a) that the notice relates to a taxpayer whose identity is not known to the inspector or to a class of taxpayers whose individual identities are not so known;

(b) there are reasonable grounds for believing that the taxpayer or any of the class of taxpayers to whom the notice relates may have failed or may fail to comply with any provision of the Taxes Acts;

(c) that any such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax; and

(d) that the information which is likely to be contained in the documents to which the notice relates is not readily available from another source.

(8B) A person to whom there is given a notice under subsection (8A) above may, by notice in writing given to the inspector within thirty days after the date of the notice under that subsection object to that notice on the ground that it would be onerous for him to comply with it; and if the matter is not resolved by agreement, it shall be referred to the Special Commissioners, who may confirm, vary or cancel that notice F7 .]

[(8C) In this section references to documents do not include—

(a) personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984), or

(b) journalistic material (as defined in section 13 of that Act),

and references to particulars do not include particulars contained in such personal records or journalistic material.

(8D) Subject to subsection (8C) above, references in this section to documents and particulars are to those specified or described in the notice in question; and—

(a) the notice shall require documents to be delivered (or delivered or made available), or particulars to be furnished, within such time (which, except in the case of a notice under subsection (2) above, shall not be less than thirty days after the date of the notice) as may be specified in the notice; and

(b) the person to whom they are delivered, made available or furnished may take copies of them or of extracts from them F8 .]

(9) To the extent specified in section 20B below, the above provisions are subject to the restrictions of that section F9 .] F10

Textual Amendments

F1 Finance Act 1989 s. 142(2), (3)and (4)(a)with respect to notices given on or after 27July 1989. Previously “a person to deliver to him such documents as are in the person's possession or power and as (in the inspector's reasonable opinion) contain, or may contain, information relevant to any tax liability to which the person is or may be subject, or to the amount of any such liability.”, “a person to deliver, to a named officer of theirs, such documents as are in the person's possession or power and as (in the Board's reasonable opinion) contain, or may contain, information relevant to any tax liability to which he is or may be subject, or to the amount of any such liability.”

and

“of the persons who in relation to the taxpayer are subject to this subsection”

respectively.

F2 Finance Act 1989 s. 142(4)(b)with respect to notices given on or after 27July 1989.

F3 Finance Act 1988 s. 126(1), (2), (6)with respect to notices given on or after 29July 1988.Previously

“and any company whether carrying on a business or not”

and

“this section”.

F4 Repealed by Finance Act 1989 s. 142(5)(6)(b), (10)and 187 and Sch. 17 Part VIIIwith respect to notices given or warrants issued on or after 27July 1989.

F5 Finance Act 1989 s. 142(6)(a), (7)with respect to notices given on or after 27July 1989.Previously

“under subsections (3) and (4)”

and

“(8) The references in subsections (1), (2) and (3) above to documents are to those specified or described in the notice in question; and—(a) the notice shall require them to be delivered or (as the case may be) made available within such time as may be there specified; and (b) the person to whom they are delivered or made available may take copies of, or extracts from them; and a notice under subsection (3) shall name the taxpayer with whose liability the inspector (or, as the case may be, the Board) is concerned.”

respectively.

F6 Finance Act 1990 s. 93with respect to notices given on or after 26July 1990.

F7 Finance Act 1988 (c. 39 SIF 63:1,2) s. 126(3), (6)with respect to notices given after 29July 1988.

F8 Finance Act 1989 s. 142(8), (10)with respect to notices given on or after 27July 1989.

F9 Finance Act 1976 s. 57and Sch. 6.

F10 See Finance Act 1990 s. 125(1), (2), (6)—in respect of notices given on or after 26July 1990, subss.(1)to (8)and (8C)to (9)to apply as if references to tax liability included reference to liability to a tax of a member state which is a tax on income or capital.