Ian Roberts outlines some common pitfalls for advisers to avoid when dealing with HMRC civil investigations.
Dealing with any tax investigation can be challenging, as the taxpayer has to face up to allegations that he has defrauded HMRC, who will press those allegations to get what they see as the ‘right’ tax answer, with the adviser trying to represent their client correctly whilst maintaining their professionalism.
The legislative background
HMRC have statutory powers to enquire into tax returns (TMA 1970, s 9A in respect of self-assessment returns, FA 1998, Sch 18, para 24 in respect of corporation tax returns, etc.). They can demand information under (for example) FA 2008, Sch 36. The use of the legislative powers is constrained (i.e. in terms of time limits, the evidence upon which the enquiry is based, etc.).
