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This 2 page Document was uploaded by an elite notetaker on Monday December 21, 2015. The Document belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 36 views.
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Date Created: 12/21/15
The Course Taken By HMRC Tax Investigations Her Majesty's Revenue and Customs (HMRC) can initiate a tax investigation or inquiry on any individual and big/small business that they suspect of irregular financial activities. They do open up several random investigations every year as well. For instance, the investigators may decide to Inquire into a particular type of trade, where they believe the scope of income is much more than the average declarations. However, a majority of the inquiries are concerned with cases where they strongly suspect tax evasion to have actually taken place. Whatever the reason HMRC may have for selecting you for a tax inquiry, they are not obliged to disclose it to you. The investigation process starts with the arrival of a letter from HMRC, intimating you that an inquiry has been initiated into your financial affairs. Usually, you will be asked to clarify certain things and submit a few business records. It is best for you to get in touch with a tax investigation specialist, who can guide you about the proper course of action to be followed from here. Quite often, expert help may lead you to identify oversights or errors on your part that could have given rise to the inquiry. You may attempt disclosing the same to the HMRC and working out a quick settlement with least amount of penalties. In most of the tax investigations, HMRC carries out a complete review of your business matters. They may even delve into private affairs, such as investigating your expensive personal possessions. You will be requested to meet their inspectors for in-depth questioning. They might also ask you to provide comprehensive explanations and records to prove your statements. You can refuse to attend the interview as it is not obligatory, except in specific types of tax inquiries, though HMRC will not tell you this. If the HMRC detects any discrepancy at your end after the investigations are over, then they calculate the additional tax due from you and advise you about it. If you are not satisfied with the accuracy of the calculations, then you can appeal against it. However, you will have to justify your own calculations. You can try to negotiate with the HMRC and arrive at a settlement agreeable to both the parties. If no settlement is reached upon, then the case comes up for hearing before the Commissioners, who then give their decision. Once the amount of tax liability and penalty is fixed upon, you simply pay it off and put an end to the stressful investigation. Article source : Elfaleh Mohamed
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