Haslers Tax Investigations Team take on Special Compliance Office
Mr & Mrs X were directors of a highly successful double glazing business (Y Ltd). During the middle of an acrimonious divorce between Mr & Mrs X Inland Revenue special compliance office (SCO) raised an enquiry into the affairs of Y Ltd.
Mr X was referred to Haslers by a firm of solicitors and instructed us to compile a report to submit to the Inland Revenue Special Compliance Office (SCO) on Y Ltd's behalf.
Both Mr & Mrs X admitted that over a specified period of time not all monies received during the course of business had been declared in Y Ltd's accounts. Not unsurprisingly, few records of the misdirected monies were retained and Haslers tax investigation team commenced their investigations in order to ascertain the level of cash diversions. This included a detailed review of Y Ltd's records and Mr & Mrs X's bank statements and life style.
Because of the acrimonious divorce between Mr & Mrs X, information provided by the two was not always consistent, often due to one trying to cause trouble for the other, despite having an adverse effect on their own position. This did not make Haslers investigation into the company's affairs any easier and the tax investigations team were often caught between the warring parties.
After a year of investigation, Haslers tax investigations team submitted their report to SCO. Due to the lack of supporting records, SCO sought settlement above that included in the report of circa £750k, inclusive of interest and penalties. Following negotiations with SCO, Haslers tax investigations team managed to agree a settlement figure of circa £350k, being less than 50% of that originally sought by SCO and in line with the figure originally included in the report submitted by Haslers.
Subsequent to the SCO investigation, H M Customs & Excise raised a VAT enquiry on the misdirected income and sought payment of undeclared VAT of circa £120k, inclusive of interest and penalties. Again, after negotiations with HMC&E Haslers tax investigations team agreed a settlement figure of circa £15k.
Related Services
HMRC Tax Investigations
HMRC Tax Investigations
VAT
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