What's the big IDEA?

IT IS AN established and accepted part of the self-assessment regime that HMRC in the course of an enquiry have the power to call for records and documents the relevant legislation being contained in TMA 1970 s 19A for income tax self assessment (ITSA) and in FA 1998 Sch 18 para 27 for corporation tax (CTSA).
The records covered by information requests can include all forms of paper documents and (by virtue of the legislation at FA 1988 s 127) computer records. This recognises the information technology age and the paperless office. Although this might suggest that HMRC can effectively request a full copy of a company's accounting system it is important to note that the department's entitlement is restricted to records and information such as may be 'reasonably required' for the purposes of determining whether a return is correct and complete.
The...