The Powers That Be

The self assessment system means it is now easier than ever before for the Inland Revenue to gather detailed information concerning a targeted taxpayer. For example information is usually sought informally at the start of a full enquiry. It can also be obtained using relevant statute at section 19A Taxes Management Act 1970 or paragraph 27(1) of Schedule 18 to the Finance Act 1998 for corporate enquiries. The Revenue can amass an enormous amount of previously inaccessible data using these powers. The writer has recently seen the opening letter concerning an enquiry into a company's tax return that requests informally absolutely every book record invoice and voucher for the period and then asks for an opinion on the standard of those records. It seems that an unqualified audit report is no longer sufficient given the request for a...