Why has the taxman selected you for enquiry?

Although a few enquiry cases are taken up purely at random the vast majority are selected because the Inspector thinks that there is something wrong with the Tax Return.

For instance your figures might reveal a gross profit rate (GPR) that is lower than those for other similar businesses in your area. There may of course be good reasons for this but the taxman will automatically assume that you have understated your profits and will seek to increase them to bring your GPR into line with everybody else's. In this type of situation it can be very difficult to convince the Inspector that nothing is wrong but it must be remembered that in tax law the onus is on you to show that the Return is correct rather than on the Inspector to prove that it isn't. In other words, and in contrast to the general rule of law, you are considered guilty until you prove your innocence and without the right sort of help that can be a very onerous task indeed.

Of course there may be many other reasons why your Return has been selected for special attention but I have the knowledge and experience to deal with any enquiry no matter what prompted it.

What happens during an enquiry?

Firstly you will receive a letter from the inspector telling you that you are under enquiry and he will provide a list of records, documents and other information that he wants from you. Failure to provide these within the time that the Inspector allows will ultimately lead to penalties being charged. I will take the appropriate actions to ensure that such penalties are avoided but just as importantly I will check that the Inspector is only asking for information that he is entitled to have.

Once the Inspector has reviewed your records he will normally ask for a meeting to discuss your business, your record keeping and your cash handling etc. It is likely that he will also want to talk about your private finances and personal spending. You do not have to attend a meeting with the Inspector but it is usually the quickest and most cost effective way of making progress. Whether or not to have a meeting requires careful consideration and if one goes ahead you need to be well briefed about what to expect. I will ensure that you get the right advice and guidance at this extremely crucial part of the enquiry and that you are well prepared for any meeting that is held.

After the Inspector has seen you and dealt with any further queries that have arisen (or finalised matters by correspondence in the absence of a meeting) he will draw his conclusions and make his proposals for settling the enquiry. Unfortunately in the vast majority of cases this means that he will be seeking additions to takings and/or a reduction in the amount of expenses that you have claimed. He will attempt to scale these adjustments backwards and forwards to other tax years under the rules governing ‘presumption of continuity’ and he will seek interest and penalties in addition to the additional tax and other duties that are due. The final amount that he will be seeking could be considerably more than you ever thought possible at the outset of the enquiry.

How can I help to reduce the amount that you pay?

The Inspector will be trying his best to maximise the amount of tax, interest and penalties that he extracts from you in order to meet the demanding yield targets that are set by the Department and unless he is kept in check he will succeed. I will only act within the law but I will use all my experience, expertise and inside knowledge to ensure that you get a much fairer deal that will lead to a significantly lower tax bill than might otherwise be sought without my help. I will deal directly with the Inspector on your behalf and I will make sure that the enquiry is worked as quickly as possible in order to reduce costs and stress. I will give you the best possible advice at each stage of the enquiry and I will keep you fully informed of developments.

Being under investigation will never be a pleasant experience but I can help to make sure that it is as painless as possible.