How to do a compliance check: applying to tribunal for approval to give a Sch36 FA08 notice and preparing for the hearing: step 1 - before you make the application
Before you make the application you should consider the following.
- Has the informal approach, see CH207200, for obtaining information been tried?
- Is an Unapproved Taxpayer notice appropriate? See CH225420.
- For Third Party notices have you asked the person to approve the notice? See CH225420.
- Is there is any other way the information could be obtained or the inspection carried out?
- Is the case worthwhile? It is for business units to decide what is worthwhile in terms of cost effectiveness, Litigation and Settlement Strategy (LSS) principles and HMRC’s reputation.
You should discuss the case with your manager and decide whether or not you should apply to the tribunal for approval to issue a notice. In particular, you should consider whether the notice would meet the criteria for an application to the tribunal as outlined at
- CH223400 for Taxpayer notices
- CH225400 for Third Party notices
- CH227100 for Identity Unknown notices.
If you and your manager agree that you should seek tribunal approval, you should usually first tell the person to whom the notice will be sent that the information or documents are required and give them reasonable opportunity to make representations to you.
It is possible, however, to ask the tribunal to approve the issue of a notice without advising the person that the information or documents are required if it might prejudice the assessment or collection of tax.
For Third Party notices you must also provide the taxpayer with a summary of reasons letter for seeking the information and documents. Complete IIP03 Summary of Reasons Letter and IIP03 (Form), available in SEES>Forms and Letters.
You may ask the tribunal to approve the issue of a Third Party notice without providing an IIP03 if giving the IIP03 might prejudice the assessment or collection of tax.