Company tax enquiries

The Taxman appears to be increasingly trying it on when enquiring into company tax returns.

They will ask to see copies of the directors’ personal bank statements as a mean of starting a fishing trip. However, you should resist this as the Taxman only has powers to see documents that support the entries made on the company tax return. They will often threaten to issue a formal notice but if you say you will take the matter to the tax court (the Commissioners) it is rare that the Taxman will persist.

If the Taxman has a suspicion that the director has received income which has not been taxed he has to open up a separate enquiry into the director’s personal tax return.