CH231900 - How to do a compliance check: information powers: rules that apply to all notices: non-disclosure to the taxpayer

If the tribunal agrees to disapply the requirement to copy a notice to the taxpayer it relates to, see CH225250 and CH232800, you should include a requirement in the notice that the third party (or Financial Institution) cannot disclose the notice, or anything relating to it, to either the taxpayer it relates to, or any other person.

This requirement is intended to prevent disclosure to/by anyone who might conceivably tell the taxpayer about the notice. Disclosure to anyone outside the entity that has received the notice is only allowed if it is for a purpose relating to compliance with the notice. This means disclosure can be made only to people who need to know about the notice to be able to provide some information or documents in order to comply with it.

Penalty for non-compliance

There is a penalty for non-compliance with a requirement not to disclose, see CH270250.

Withdrawing or extending the requirement

Any requirement to not disclose the notice, or anything relating to it, to the taxpayer it relates to, or any other person, except for a purpose relating to compliance with the notice, can be withdrawn or extended by HMRC. This must be done in writing.

Extensions are for a period of 12 months but there are no limits to the number of extensions that can be applied. Extensions can only be agreed by an authorised officer, and there must be a reasonable belief that not doing so might prejudice the assessment or collection of tax, see CH24220.

There is no right of appeal against a decision to extend the requirement.