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In addition to the usual Revenue investigations instituted when
the Inland Revenue have some reason for enquiring into the correctness
of a Tax Return, the Revenue will also select some Income Tax Returns
for “audit” on a random basis.
Taxpayers will be asked
to produce evidence to support information contained in Returns,
which may consist of dividend vouchers, bank or building society
statements and other details. All records should therefore be
retained for a period of at least 22 months, following the end
of the year
of assessment. Business records need to be kept for at least
6 years, using the accounting year end falling within the tax year
as the date from which the 6 years should be measured
The Inland Revenue are not required to give reasons for raising
enquiries regarding Tax Returns and at least initially it will
not be known whether a Return has been selected for audit because
the Revenue are not satisfied with information given, or whether
the Return has been selected on the basis of random audit.
The
Inland Revenue have announced that they intend to increase substantially
the number of Tax Returns chosen for “enquiry”.
We hope you find the above of interest and as indicated earlier,
will be pleased to advise you further on any specific points.
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T0 TAX PLANNING YEAR END 2008 CONTENTS
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