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Where Taxpayers and Advisers Meet

Should I send my personal bank statements?

Posts: 4
Joined: Wed Aug 06, 2008 3:16 pm

Postby fpglobal » Fri Feb 04, 2005 8:30 am

Following the IR's initial request for details ie dividend vouchers and bank interest details for my personal SA, the inspector has sent an apologetic letter requesting my personal bank statements.

They have listed all the accounts including the mortgage on the property I live in. The majority of these are joint accounts with my wife. I think that they believe the other house I have with no mortgage is rented to my nephew.

To make matters worse my wife is paid in cash although tax is paid on these earnings and also the investigation is the year I moved house and my wifes family gave her quite a bit of money both cash and cheques which has also ended up in these accounts.

Looking at the statements has given me a headache that I can't even explain, never mind the taxman.

Should I just send them everything they have asked for given the mess the joint accounts are in and hope for the best?

If not how should I explain not giving up the joint accounts given my own accounts are clean?

Posts: 4
Joined: Wed Aug 06, 2008 3:16 pm

Postby fpglobal » Fri Feb 04, 2005 8:32 am

just to add I have not taken rent. It's just my joint accounts with my wife look a mess.

Posts: 1797
Joined: Wed Aug 06, 2008 3:15 pm

Postby Instinctive » Fri Feb 04, 2005 11:58 am

If I am not mistaken, you have raised the tax enquiry query in this forum not so long ago.

Please do not be under any illusion that the Inspector will make you produce the joint bank statements either voluntarily or forcibly or most likely by threats of commissioners hearings and making excessive determinations. Personally, I do not see any point in resisting his demands, sorry, I should say requests.

You say that the Inspector has sent in an apologetic letter! Don't be fooled by this. The Inspector knows exactly what he is doing.

It seems very clear to me that you have a difficult time ahead on the basis of what very little mentioned here, let alone the details not mentioned by you.

The Inspector will look at unexplained lodgements with suspicion. You will also appreciate that the Inspector is used to hearing the same story almost in every enquiry of this nature, ie money has been given by family or it has been won on horses and gambling or it is loans from friends. This is not to say that you are lying, but the Inspector will not simply take your word for it.

Hoping for the best will not take you anywhere. If you do not already have an Accountant, you are best advised to retain one. However, like in any disputed matters, you will need to balance the tax demands against the strain of the enquiry and the costs of professional representation.

My best advice is to own up to receiving the rents if indeed this has been the case. It is never too late for this. If there is definitely nothing to hide, make an effort to explain the accumulation in the savings accounts of the family, including children if you have any.

I would also look at the accumulation of savings year by year over few years prior to the enquiry because the Inspector will most probably move towards this in due course.


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