Tags: tax enquiry, tax fruad, tax investigation
This case was referred to us from another accounting firm in London. The case related to a retail company and there was a dispute on some large items that had been claimed in the tax return. The HMRC inspector disagreed with the deductions and had disallowed these resulting in a significant tax liability together with large penalties. The case had been going on for over 3 years before our firm was appointed. Our tax investigation specialists met with the HMRC officers involved and after long discussions and negotiations agreed that full relief will be allowed for the expenses claimed. The relief was split into revenue and capital portions which meant that the client will get relief in two stages compared to no relief before the case came to us. The final settlement meant that the tax demand from HMRC was significantly reduced and the penalties were cancelled. Our firm is grateful to the HMRC officers involved for their cooperation and understanding our client’s position.
Our analysis: This case came to us after roughly three years of the initial enquiry letter. During this period, various areas of dispute arose and matters kept getting worse not mentioning the professional costs that were incurred. After we took on the case, it took us a few weeks to resolve matters and close the case. Our advice has always been to appoint a specialist as early as possible to reach a quick and pain free resolution.
This post was posted in: Code of Practice 8 Investigations Cop 8, Code of Practice 9 - COP 9, Tax Investigation | Be the first to comment