Tax Investigations and Tax Enquiries
What types of enquiry are there?
Enquiries can be raised into company or personal tax, national insurance or VAT affairs. These will either be questions about a particular aspect of your tax affairs or else a general enquiry into all of your finances.
They arise for a variety of reasons, the most basic being that the tax inspector saw an unusual ratio or pattern in the accounts presented and wanted more information.
Our advice on handling tax enquiries:
- Always respond quickly to the inspector, putting the ball quickly back into his court. You will be surprised how long he may take to deal with matters which can work to your advantage
- Pre-empt the next question and prepare for all possible scenarios
- Be honest but don’t answer questions that have not been asked
- Ensure that he is entitled to ask the questions and for the information he is requesting. You would be surprised at how often there is a statutory defence to the questions asked.
- He will rely on the Inland Revenue manuals for handling the enquiry. Always ensure that this is backed up by tax law. At the end of the day enquiries are either about missing or incorrect information that has been supplied or they centre on interpretation of the tax code.
Let the experts help
By being represented you are more likely to be able to argue your case with the full understanding and backing of existing tax legislation and case law, thus obtaining a better outcome
At Parker Chartered Accountants we have great experience in this area and handle enquires into most areas of tax.
Using experts, experienced in this field will mean your enquiry will progress more quickly and save you valuable time and resources.
Our enquiry close rate is something that we are very pleased with and in many instances we have closed enquiries with minimal adjustment to tax.