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.
- R&D tax claim 102 1
- How much to charge for Ltd company accounts ? 581 13
- Vat threshold issues 115 2
- Growing pains 361 7
- Does Freeholder have to be director of our RTM Company? 237 14
- Joining the flat rate scheme retrospectively 74 1
- Consequential loss claim 121 3
- Residents Association Corp Tax 190 5
- ATT Annual Return Problems 120 2
- what is classed as investment under other fixed assets? 107 1
- Is a Mercedes Vito a van for tax purposes? 338 5
- private to company car? 204 4
- HMRC Penalties - are they enforceable? 957 34
- Wages paid into another persons bank account 588 10
- Buy to let allowable interest 154 2
- We accountants are not the only ones!! 238 1
- Partner with an IVA 175 5
- Your fondest calculator memories 600 26
- Goodwill Valuation Prior to April 2002, with the intention of selling on due to personal changes 426 11
- Has been asked before but help needed 320 7
- DTR : TIOPA 2010 Section 42 458
- CTA study material 418
- Sect 102 TMA 1970 304
- Sage Forecasting - Print filename 287
- Pre incorp expenses 279
- Relief on French Tax Deposit? 246
- Anyone have clients that use Pay4Later to offer customers credit? 235
- Slight twist on employment related securities 210
- How to claim additional losses after mistake in CT return 185
- What is the tax position if I am working overseas but via a UK agency? 178