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Revenue Enquiry

Revenue Enquiry

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Our client received a 'check of company tax return' notice for accounts prepared by our predecessors.  They wanted an analysis of other debtors, which was quite high - presumably to see whether it contained an overdrawn DLA.  It wasn't, it related to an investment in another business made in 2003.  We provided a letter in respect of the investment.

However, HMRC wish to see evidence of the original investment, presumably a bank statement.  Our client doesn't have bank statements from that period as it is over 6 years, nor does the party who received the investment.

My questions is: can they demand this?

Replies (5)

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By Rammstein
18th Nov 2011 08:31


Why don't you just get a letter from the business invested in confirming the details.  This should be proof enough for HMRC. 

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By thisistibi
18th Nov 2011 09:20

Why not

Perhaps the question should be - why would you want to withhold it?

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Replying to chatman:
By Richardrussell
18th Nov 2011 10:49


Rammstein - we did.  We provided a copy of the letter from 2003.  They now want to see 'evidence of the original investment'.  We've taken this to be a bank statement, but we don't know what they're getting at.  The investment was shown by our predecessors in 'other debtors' every year, don't know why HMRC have suddenly taken an interest.

The point I was making in my question was whether HMRC had the power to ask for records that the company is well within it's rights to destroy.

Thisistibi - we don't want to withhold it.

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By Roland195
18th Nov 2011 11:11


Why have you assumed that they mean the bank statement?

For it to be an investment then presumably the company received something in return for its money such as shares or loan notes?

I expect that this is what HMRC want to see.



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By George Attazder
18th Nov 2011 11:21

The nub of the issue may be...

... is the investee entity a partnership involving a party that controls the company? and is the investment a loan? Why is it in current assets? rather than being shown as an investment? how's the investment shown in the other parties accounts?

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