John Baldwin HMRC Enquiries An Update

John Baldwin Last 11 years with Revenue heading up Investigation team Worked for CCH/IRPC Taxation Services for over 13 years Promoted to Managing Consultant in 2002 Manages team of 6 tax and VAT consultants 2

Risk Assessment What selection criteria do the Revenue use? What steps can you take to lessen the risk of being selected? How are HMRC Inspectors judged on their results ? 3

Revenue Information powers Inspectors still asking for private bank etc statements in opening letters. Is Inspector entitled to see trader’s diaries/appointment books? Offshore Bank Accounts Tenants Deposits Schemes Taylor v Bratherton SPC

Revenue Meetings Why are the Revenue insisting on these in their opening letters? Do we have to attend? What preparation can we undertake? Are we entitled to a detailed agenda? What are our rights during a meeting? What should we look out for ? Meeting Notes. 5

Discovery Provisions S29 TMA years or 20 years ? Basis for PY additions – based on RPI Scorer v Olin 6

Additions – Quantification & Extent What methods might HMRC employ quantify additions to profits ? How can these be countered ? How many earlier years will be involved ? How will these earlier additions be quantified ? 7

Appeals Units Why set up ? Who do they comprise ? Improvement ? 8

New Penalty Regime FA 2007 Mistakes/Misinterpretations - no penalty Failure to take care - range 15% - 30% Deliberate - range 35% - 100% 9