28 Mar 2022
Cider of Sweden Ltd shows that the timing of a third party’s application for disclosure of documents relating to a case before the FTT will be important to its chances of success.
When third parties can get hold of documents in tax cases is often a key consideration for clients. The decision of Tribunal Judge Kevin Poole, sitting in the FTT in Cider of Sweden Ltd v HMRC and Ernst & Young LLP [2022] UKFTT 76 (TC) is likely to be welcomed. The FTT dismissed EY’s third party application for disclosure of documents (including the notice of appeal and supporting grounds, HMRC’s statement of case and any further pleadings) that EY had identified following disclosure of court documents in parallel High Court proceedings (using CPR 5.3C(1)). In rejecting EY’s arguments, the FTT applied the leading Supreme Court decision of Cape Intermediate Holdings Ltd v Dring [2019] UKSC 38 and summarised certain general principles, including:
In summary then, the FTT has provided further helpful clarification (in addition to Hastings Insurance Services Ltd v HMRC and KPMG LLP [2018] UKFTT 478 (TC)) as to the exercise of its inherent jurisdiction to grant third parties access to documents relating to FTT appeals. The FTT has confirmed that the timing of such third party applications will be an important consideration in its assessment of the advancement of the open justice principle. Further, to the extent a fact-specific balancing exercise is then conducted, the principle of taxpayer confidentiality (and HMRC’s statutory duties in respect of the same) will be weighed against open justice advancement.
This article was first published by the Tax Journal.
This material is provided for general information only. It does not constitute legal or other professional advice.
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