Under Investigation

[petero]

I run a small import and wholesale business. During the past months of carousel fraud we have attracted the attentions of HRMC.

So far I have found the investigation incredibly aggressive. Especially considering the level of turn over we are at. My personal bank account has been entered without my prior knowledge. Strictly confidential information regarding an informal discussion with an insolvency agency to consider our position, privy to only 4 people has been obtained and acted on. Can anyone tell me at what level do the HRMC start taking these "super sleuth" strategies.

After 4 interviews in which, I have cooperated fully, the term "fishing expedition" could not be more appropriate, very little has actually arisen that is untoward with my business activities. A very unspecific line of questioning has lead not only to a heap of stress but also incredible amounts of time and effort. Many have said that I have been "shopped" for some reason and that they will continue until they uncover something.

If anyone has any thoughts / advice or has been in a similar situation I welcome your comments.

Many thanks in advance.

[The Ivy Office Ltd]

Presuambly you are being represented by a professional in this matter. If not HMRC will almost in every case take a different approach to their fishing expeditons with unrepresented taxpayers.

Look at this link and ask for the enqiry to be closed.

Dennis

taxesclear.co.uk

[The Ivy Office Ltd]

sorry here it is

http://www.hmrc.gov.uk/leaflets/cop11.htm#l

[cta]

Do you have an accountant and/or have you been represented by a profesional adviser through the process ?

Have you considered fee protection insurance ? (if you don't already have it, it won't cover you this time but is recommended)

Who provided the personal bank information to HMRC ? They are not normally entitled to this under an enquiry into your business.

I would suggest telephoning them and asking for a timscale for closure and an indication of the likely outcome.

If you are not already represented, I would recommend a CTA (Chartered Tax Adviser) helps you to sort this out. www.wnts.co.uk



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The above is for the information of readers. Whilst every effort is made to ensure accuracy, information contained may not be comprehensive and recipients should not act upon it without seeking professional advice.
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[petero]

I thank you both for your comments. I do have legal advise.

Also I never given them my personal bank acc. details. The depth of some of the information they have discovered about my business has been nothing short of remakable. I'm not a paranoid person but I cannot fathom out how they have been privvy to such information.

Thank you both again.

Pete

[wamstax]

Contact your bank and ask if any approach has been made to them for your personal bank account information. Super sleuth? Maybe not as HMRC get information from sources that you would not imagine.Including Proceeds of Crime Act (which includes Tax evasion) reports that require to be made by professionals when they come across instances of tax evasion but that it is illegal for them to advise you that they are making. Potentially somebody (of the 4) may have felt it necessary to make a report to NCIS re your discussions. However unless HMRC had taken action under S20(3) TMA it would be strange for HMRC to be using personal banking information obtained in any covert manner. Presumably the information referred to them would not be stolen property?

It might also help to know exactly what officers in HMRC are conducting the enquiry (e.g. indirect or direct or employer compliance etc.)and what if any Code of Practice has been issued It might help to look at this link

http://www.wamstaxltd.com/codes_of_practice.html

and if you/ or your professional advisor needs professional help
bill@wamstaxltd.com
http://www.wamstaxltd.com

[Taxbar]

You need a VAT investigations specialist to advise you.

Someone who has dealt with the Carousel trading investigations team.

Anyone else is just wasting your time!

STP
info@stratax.co.uk

[ivorproblem]

If petero has nothing to hide and done no wrong why incur the additional costs of a VAT investigation specialist ? If petero has an accountant he should be able to assist in the matter and if he is not happy with the situation he can always make a formal complaint over the issue/enquiry.

[wamstax]

both Taxbar and Ivor have merit in their advices as if it was carousel fraud then of course someone can get involved in the middle of a carousel fraud trail unwittingly. Unless of course your type of goods are very low value low and very low quantities that wouldn't tend to be carousel fraud type goods. Unless of course somebody knows better
regards & hope it helps
bill@wamstaxltd.com
http://www.wamstaxltd.com