Third Party Information

[JINYO]

I have been undergoing a tax investigation now for 18 months for the year 2002-2003 (1st year of my business income earned £5000).
Using correspondence the Inland Revenue have checked my business records/ personal current accounts/saving accounts/divorce settlement/bills, basically they have checked all my business/personal financial history for the last five years.
I have just received a letter from the IR and they donÂ’t have any further questions regarding my financial/ business history.
However I have received news from my accountant that the IR would still like to have a meeting with me. My accountant has told me that the meeting is due to third party information.
My accountant has also told me not to worry, as the IR has to have very strong evidence against me. Is this true?
I am worried! Does the IR have to have strong evidence or can they go on an anonymous letter, as anyone with a grudge against me can write anything? If so how would I go about proving them wrong?

KAM

[deanshepherd]

I would advise avoiding a meeting altogether. The Revenue often use these as a final 'fishing expedition' particularly when none of their enquiries has lead to anything untoward thus far.

I would suggest you or your acountant write to the inspector and decline the request for a meeting and ask him to put in writing any remaining questions that they would like answered.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

[claymore]

If the enquiry has been running for 18 months and the Inspector hasn't come up with anything yet, you should consider applying to the General Commissioners to have the enquiry closed. Write to the Inspector to do this - he is obliged to act on it.