How not to run a tax enquiry
A lack of consistency in the investigation team, questionable assumptions, and missing documents led the first tier tribunal (FTT) to conclude HMRC had not exercised ‘best judgement’ in reaching the estimated tax assessments.
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Done by someone who knew how records work this should have been an easy win. Done by HMRC a catastrophic fail.
Time HMRC got some accountants in their team
I have written many times and I'm pretty sure I've mentioned it on here that HMRC training should include a year within an Accountants office. Also trainee accountants should spend a year within HMRC offices. There is no reason (oh yes HMRC are supposed to be impartial) why interchanging wouldn't work. It is the only way that eventually we will get a fit for purpose HMRC service. It may also lead to the complete overhaul of our tax system, which is long overdue.
HMRC does employ quite a number of accountants - but much further up the food chain so that the humble VAT officer rarely is graced with their support. Also, the prevalence of desk based VAT audits means that the current average VAT officer rarely sees a real business in action. Gone are the days of the local VAT officer visiting businesses at least 5 times a week, so that they learned their patch and the various trade classes within it. The way Corporation Tax, VAT and RTI interact is still a mystery to the average HMRC Officer, all these years after formation of HMRC. That said, there are a few brave souls willing to cross to the other side to learn how the other half works.
They used to have some in Special Compliance teams back in the 90s (my last substantial HMRC enquiry)
I often thought that if HMRC embraced something like the TV series "New Tricks" with retired accountants rather than retired police officers they would be on to a winner, so HMRC, drop me a note in 4.75 years and I will be happy to discuss my stipend for say two days a week breaking books.