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They are out of control
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Mon, 06/09/2010 - 22:11 |
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I am horrified
The last time legislation like this was in force it was by a nation that had a red flag with a gold scythe and sickle on it .....
It is reaching the point where HMRC is under no control and a law unto themselves
MP's spends more time ordering their Gin and Tonics than legislating our tax system
Our tax system needs to be fair and just but this isnt
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Know your clients rights
If they arrive unannounced with or without tribunal approval you do not have to allow them access. Any client faced with such a visit and with "something to hide" would be well advised to deny them access and to then immediately remove all records, computers etc and deliver them to their accountant or solicitor where they can be placed in a secure room to which HMRC can then have supervised access. Personally I would video & record the entire visit and examination and have at least 3 witnesses in the room at all times.
This way HMRC ONLY have access to the records and not to the taxpayers home or personal records. Until they prove wrongdoing howw he afforded his 54" TV is none of their business.
If they make an unannounced visit then they are demonstrably taking an aggressive and accusatory stance, and the taxpayer is entitled to take an equally aggresive line of defence.
It should also always be born in mind that it is in the taxpayer's interest to get HMRC to make a formal accusation of a criminal act as early as possible, and, to have this recorded. The instant an accusation is made their right to touch, seize, or examine any records whatsoever ceases as those items become potential defence evidence which they are only entitled to see during disclosure in the court process. This is called legal privalege and any attempt to seize examine or copy any further documents after a formal accusation is made is unlawful and is sufficient to have any subsequent prosecution thrown out for abuse of process.
This means that once they have made the accusation they must already have sufficient evdence to puruade a court that there is indeed a case to answer, otherwise the defence is entitled to simply say nothing, offer no evidence, and put them to the test of proving their accusation beyond reasonable doubt.
It remains to be seen just how often HMRC use these powers and in what circumstances, but accountants would be advised to be certain of their legal rights (and dont take HMRC's word for it).