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Proving knowledge

26 February 2008
Issue: 4147 / Categories: Forum & Feedback
An HMRC enquiry into a cash-rich taxi driver

My client is a taxi driver. He has been investigated by HMRC for the last 18 months as he had been living off cash savings while doing 'the knowledge' and they didn't believe him.

All his life my client has earned and saved cash keeping it mostly at home. The inspector was completely incredulous and having had mountains of evidence and business and personal bank statements took much time cross-examining him about how much he spent on newspapers and confectionery.

Getting no further he even asked for his children's bank statements and then any offshore bank accounts the man had pretending that he had found evidence of these.

I believe that the taxi driver is honest. He lives in a council flat and we have just asked the inspector to supply details of this unsuspected offshore wealth.

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