Postby Instinctive » Mon May 02, 2005 3:39 am
No, you don't have to be insured for this if you don't want to.
Tax investgations (they like to call it enquiries) can be for specific queries, or targeted or simply at random. If your accountant handles any replies and attends any meetings with you, you will still be responsible for his charges. In some cases, it is difficult to prove your innocence, eg cash trades, gross profit margins, accumulated savings, very nominal spending habits etc. You could still be drawn into a lengthy investigation and the costs can easily run into thousands.
This is like whether to take out an appliances insurance. You never know if and when it will go wrong. It could break down in 3 years or last you 20 years.
If you think you can handle the tax inspector by yourself, you could take a risk.
Ramnik