How do I combat this particular longest ever running Investigation | AccountingWEB

How do I combat this particular longest ever running Investigation

I have had an investigation running for some two years, mainly as a result of my client being unable to provide copy building society account statements - the B.Soc in question admitting that the records had been lost.

Lo and behold, when the statements did appear, there were 'unexplainable' bankings of around £6500, together with his car sale proceeds and board/lodgings money received from his son.

I made the client aware that anything he could not explain would have to be assessed and most likely back dated over a number of years.

I spoke to the Inspector, who freely admitted my most recent letter had sat on his desk for six weeks. Two days later I received his proposed amendments to which I did not know whether to laugh or cry. The stated net income had been uplifted from £14,000 to £42,000 based on what was described as 'all unidentified bankings into the Building Society'. All other aspects of the enquiry were concluded.

When I rang him to point out that his list of unidentified bankings actually included £20,000 of inter-account transfers (to accounts he had already inspected) plus the car sale and housekeeping monies - I gave him the opportunity of redoing his paperwork rather than waste my/my clients time based on such nonsense.

When I rang this morning, he now states that they have changed their minds and will be reassessing based on a 'business economic model' that states that a 40 year old builder with children should be earning £200 a day in labour.

How can I combat this man's approach? He is intent on assessing my client by hook or by crook on over £40,000 net income when the true figure even after including the ommissions, is around half that.....

Client has admitted his records were incorrect, but the Revenue are now seemingly using this as a reason to assess him on arbritary amounts that bear no relation to reality.

I would be grateful for any assistance....yes the client has errored, but he was willing to top-up his mortgage to pay all back taxes. If the Revenue succeed in their approach it will bankrupt him.

Paul Evans

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Anonymous |

Steve is absolutely right

nigelburge |
nigelburge's picture

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andymeeson |

Drastic action

Anonymous |

me again

Anonymous |

I'm sympathetic, paul,...

martinfoley07 |