Re Investigation

by **kumar9** on Mon Aug 09, 2010 10:17 pm

A tax investigation of the VAT matters of a limited company was started about 5 years ago and finished in 2008 without any unfavourable consequences and repayments withheld were released to the company.The company was sunsequently closed due to the economic situation.Can the Revenue re open the VAT investigation?Can any assets,like a house or gifts recieved from relatives by former directors in 2010 be attacked ?
Thanks
kumar

by **wamstax** on Mon Aug 09, 2010 10:59 pm

Hi There and thanks for your question.

The first real question is why should the VAT matter be reopened? Was there something that was concealed or hidden by the directors/shareholders of the company? The next is you say that the company was closed down.... Does this mean that the company was liquidated or struck off the company register in which event there is basically no entity left that could be reopened. While it is feasible for directors or shareholders who have been guilty of fraud to be pursued personally it would be unlikely unless the figures were material (by that I mean large) that HMRC would pursue somethign where they were unlikely to reap decent rewards for their work.

Please come back if you can be any more forthcoming without revealing your identity to any HMRC reader of such a forum. Alternatively you might be better served by a short chat with a tax investigation specialist. We (at least I) usually like to have a chat with any prospective client to ensure that they understand exactly where they and we are in relation to matters and whether working together would be appropriate.

by **kumar9** on Mon Aug 09, 2010 11:17 pm

No Eveidence was withheld at all.The investigation lasted nearly two years and everything asked for was provided and with full co operation .The amount with held was not a big amount (about £ 6000).
Company was struck off.
Asked the question because potential doner of gift is old and perhaps over cautious and asked to check.
Thanks

by **wamstax** on Tue Aug 10, 2010 12:12 am

Thanks and based on what you say it is unlikely that HMRC would seek to do anything with the company as it was struck off. Having been struck off there is no legal entity left and I hope that this reassures your donor