Postby rapido » Tue Jun 06, 2006 2:35 am
As we naively (OK, stupidly) thought our business and accounts were transparently simple, if a little unconventional, we didn't actually use an accountant as such, just a Tax Advisor to handle the tax side of things. This tax advisor is now vigorously defending our figures but so far the Inspector remains unimpressed. As it was entirely a cash business we have little in the way of proof, but then neither do they. They cannot point to an extravagant lifestyle or substantial assets to support their accusations, or suggest where all this missing money disappeared to (tens of thousands of pounds, in cash!). Anything we say in our defence only elicits the Mandy Rice-Davies answer: "Well you would say that, wouldn't you?"
Ironically, we don't actually mind paying Income Tax, we understand the need for it; we also understand the need for rigorous investigations to combat fraud, but there seems to be no provision for protecting the innocent.