If there’s one letter that’s never welcome in one’s postbox, it’s a letter from the taxman. A tax investigation can range from a relatively benign routine enquiry into some aspect of your tax return that the relevant tax authority does not understand, through to a full-blown investigation into your affairs, normally when there is a strong suspicion that something is seriously wrong.
The first thing to note is that it is likely, at best, that you have made some kind of mistake that needs to be rectified and that things will at least remain ‘civil’. However, where your tax authority suspects deliberate behaviour (i.e. tax fraud), it will launch an enquiry, and the letter announcing this can appear quite terrifying. Before your stress levels go off the scale, bear the following in mind:
If taxpayers are properly advised and cooperative, even the most sinister-seeming tax investigation can become quite routine. The bonus is when the taxpayer comes to realize that the tax authority is just doing its job — to ensure that you pay the correct amount of tax under the law.