Hi
I started up as a solo practitioner last year and the first company to become a client has now had a full tax enquiry opened on the first tax return I filed for it. Does anyone know whether the reason for the enquiry would be because I am a new practice? Can I expect the same to happen with other new clients?
The enquiry is going to cause stress and hassle for the client, which I am embarressed about given that he was good enough to take a chance in a new firm. It seems very unfair to put this upon somebody supporting a new small business.
I have spoken to the officer carrying out the enquiry and he said that he couldn't disclose the reason why the enquiry has been instigated, however, he did say that he would have nothing to with the fact that I am a new practice. I have mentioned this to the client, but he feels it is too big of a coincidence.
I'd appreciate anyones thoughts.
Chris
