Before self assessment was introduced in 1996/7 the inspector had to justify the opening of an investigation. Under SA the taxman was under no obligation to do so and typically did not, explains Chris Chadburn.
Interviewing the taxpayer at an early stage of an investigation has always been a critical objective for the inspector. The absence of candid explanations of the reasons for the investigation and detailed agendas increasingly lead advisers to:
- provide what was the legally required – usually records and some basic
- get written questions from the inspector after the record review
- consider the pros and cons of an early meeting after considering the answers to those questions
In late 2007 HMRC announced...