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Where Taxpayers and Advisers Meet

S9A SATR enquiry & DLA request

Milbo
Posts: 45
Joined: Wed Aug 06, 2008 4:07 pm

S9A SATR enquiry & DLA request

Postby Milbo » Fri Jan 19, 2018 12:31 pm

I have received a S9A enquiry into a personal tax return where HMRC have made a request under the heading of Directorships for information which wouldn't be declared on the SATR such as:

- a chronological analysis of all director loan accounts, whether in credit or debit;
- details of all the activity of the company/companies;
- provide details of all other transaction between you and the company/companies to include any assets transferred with supporting evidence of the value.

I am loathe to provide the above as the DLA is in credit and interest is not paid by the company so an entry on the tax return isn't necessary. If I refuse to provide the information on the grounds that it isn't relevant to the tax return HMRC could open an enquiry into the client's company but I feel that it where the request should be made.

What do you think and has anyone received similar requests?

Thanks,

SteLacca
Posts: 443
Joined: Fri Aug 07, 2015 2:17 pm

Re: S9A SATR enquiry & DLA request

Postby SteLacca » Fri Jan 19, 2018 12:49 pm

I agree that HMRC should open the enquiry into the company rather than the director. However, rather than forcing their hand, what is the source of your objections? If providing the info could enable HMRC to "put it to bed" with no adjustments, then why not do so?

wamstax
Posts: 1868
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: S9A SATR enquiry & DLA request

Postby wamstax » Fri Jan 19, 2018 1:09 pm

I agree with SteLacca’s pragmatic sentiments but only to an extent. Why exactly are HMRC taking this line -is it because they are out of time to raise an enquiry into the company? If so I would temper SteLacc’ suggestion to ask why they have taken this devious (uneducated) approach.

If after weighing up the pros and cons (e.g. if they were still in time to raise an enquiry into the company’s accounts) of not responding to them my inclination would be to respond along the lines that the second question cannot be seen to be relevant to your clients personal tax return and is not a reasonable first party question or request for information to check your clients tax position.

It is of course possible that your client hasn’t told you about something that is relevant to his taxable benefits and therefore before putting your head in the noose I would question him closely to test out whether there were any matters that you missed or was not aware of when you compiled the company accounts ( after all you weren’t commissioned I assume to carry out an audit and something might have slipped thru).

If of course you then become aware of a shortcoming you (and the client) would be duty bound to correct the error ( or if you don’t then it would clearly be DELIBERATE tax evasion if eventually determined). If they are on the chase for that unpaid tuppence worth remember they have the resources to take as much time as they need and your client needs to sleep at night.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

Milbo
Posts: 45
Joined: Wed Aug 06, 2008 4:07 pm

Re: S9A SATR enquiry & DLA request

Postby Milbo » Fri Jan 19, 2018 2:44 pm

The CT enquiry window is still open.

The contents of the letter do give the impression that it is more than a fishing exercise and we will meet with the client before responding to HMRC.

I do however feel that this is another case where HMRC are pushing the boundaries which they shouldn't be allowed to get away with although no one wants to antogonise them.

Thanks for your helpful replies.

wamstax
Posts: 1868
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: S9A SATR enquiry & DLA request

Postby wamstax » Fri Jan 19, 2018 3:36 pm

Unfortunately some of the new breed officers don’t have the knowledge and it is not always intentional. Yes I agree totally that they should be challenged to do the job right and if they can’t they should be stopped.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

wamstax
Posts: 1868
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: S9A SATR enquiry & DLA request

Postby wamstax » Fri Jan 19, 2018 3:43 pm

I assume that the letter comes from a local office and isn’t accompanied by Code of Practice 8 or anything like that which would not normally be issued to a company
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

Milbo
Posts: 45
Joined: Wed Aug 06, 2008 4:07 pm

Re: S9A SATR enquiry & DLA request

Postby Milbo » Tue Feb 06, 2018 11:08 am

I can confirm that the letter was from a local office.

Having received another couple of new enquiries over the past month, it appears that there has been a definite change in the HMRC initial information requests.

wamstax
Posts: 1868
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: S9A SATR enquiry & DLA request

Postby wamstax » Tue Feb 06, 2018 2:43 pm

Yes just got one that is so generic that it is like a checklist without any basis. Going to be challenged No FISHING EXERCISES HERE
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

Milbo
Posts: 45
Joined: Wed Aug 06, 2008 4:07 pm

Re: S9A SATR enquiry & DLA request

Postby Milbo » Mon Jan 14, 2019 10:18 am

I have just received the same DLA request for each of a client's companies (there are two) under the heading 'Directorships' and wondered what was the outcome of any challenges to the requests.

Many thanks,


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