Newth Talks Tax - Tax writer of the year John Newth solves your tax questions

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Handling the inspector

Paul Evans explained, in his query of 30 August 2006, that he had had a tax investigation running for two years. This was mainly due to missing building society statements. When the statements did appear, there were unexplained bankings of around 6,500, together with car sale proceeds and board/lodging payments received from the clients son. The client was informed that any unexplained income would have to be assessed and probably extrapolated back over several years.

The inspector admitted that Pauls latest letter had sat on his desk for six weeks. When he did reply it was to the effect that the stated net income had been uplif...

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