Postby Lambs » Sat Dec 04, 2004 1:14 pm
I am surprised at the Revenue's response: it is within the powers conferred on them by way of The Taxes Management Act, to request the provision of documents relevant to a taxpayer's affairs, from a third party. Specifically, s20 TMA '70. I can only infer that they are hoping for an 'amicable' arrangement between you and your agent.
However, I should stress that it would normally be better for you to get your agent to provide the information, than have to resort to such extremes.
Yes, you may appoint a new agent to act on your behalf at any time, insofar as the Inland Revenue is concerned. However, as you no doubt realise, asking a new firm of accountants/tax advisers to answer questions about a tax return, with which they weren't originally involved, will probably involve more time, effort and expense.
I can only assume that you have reached an impasse with your current agent: often this is as a result of a disagreement over the amount of, or failuer to pay, fees. Your accountant/tax adviser may legitimately argue that he or she has a 'lien' over your books and records, if work done on them hasn't been paid.
If I have understood your circumstances correctly, then you face a difficult decision: appoint a new agent, on the understanding that dealing with this enquiry is likely to be more expensive; or retain the services of your current agent, maintaining a relationship that may be irrevocably 'soured.'