Company enquiry, Directors bank statements requested
Limited company, selected for an enquiry, (2008 year end)
HMRC asked for a meeting which was attended and then issued a letter asking for accounting book and records. After their review of the records they then asked numerous other questions but also asked for copies of the directors personal bank statements from 2005 to 2009 or for them to sign mandates so hmrc could request them from the bank.
We answered the queries hmrc raised but asked them to reconsider if they really needed the bank statements in light of the information provided in that letter.
The 'tax specialist' at HMRC has now replied stating they beleive there are cash sales undisclosed in the accounts (client is adamant there are none) and quoted various sections of the enquiry manuals and has reiterated that the bank statements need to be sent in or they will obtain them formally.
2 questions really -
Firstly, is this normal procedure to ask for these personal documents so early in the enquiry?
secondly, is it reasonable to ask for directors bank statements for periods prior to the year under enquiry for the company? Anyone got experience of this as the questions/answers from HMRC seem to be standard responses.
- Capital Allowances on Furnished Holiday Lets Business 188 4
- SA302 281 6
- Suppliers for Online Card Payments? 237 4
- Go Cardless 329 9
- How to prove income for a mortgage if you have no SA302s 217 3
- Hmrc software 226 3
- Mehjoo 266 1
- What expenses can be claimed after a move to Cornwall? 112 1
- Hosted email exchange 173 5
- South African Government Pension 180 1
- Amazon Fees, Sage VAT/Tax code T20? 166 3
- Can anybody help withe the RTI end of year process? 289 4
- VAT Bad Debt Relief 309 13
- How long are you on hold- IRIS Payroll 245 7
- Childcare vouchers and final month payroll Qs 149 3
- Stopping trading and de-registering for VAT 288 7
- New Email Extensions 201 1
- Are HMRC cutting out Agents in tax investigations? 319 2
- Dental practice incorpration 156 1
- Audit rules 184 4
- Xtuple 510
- Qtac payroll for bureau 349
- Confused - Professional Association a Mutual trader, or not? 293
- Industrial & Provident Societies 284
- Data transfer from Sage Line 50 to VT Transaction+ 227
- VAT Payable on Expenses for Non-VAT Registered Ltd Co 181
- Why would HMRC offer to close an investigation by contract settlement 178
- Domain name sale and limited company 172
- CIS schemes 163
- Director legal fees in loose connection to the company 147