Tax Investigations




The Forensic Accounting Services team has worked as fraud investigators in the past at the top levels of the Inland Revenue itself, and consulted in a large number of tax investigations since then.

Therefore it is not surprising that we are often approached by other accountancy firms to help resolve enquiries being made by the tax authorities into their clients’, and sometimes, their own financial affairs.

It is rare that we are instructed at the outset of an enquiry, whether it be in the civil or the criminal arena, but it is more often the case that we are asked to become involved because there is an impasse between the parties, and neither is willing to give way on a particular point.

Criminal Tax Investigation

If it is a criminal matter then, inevitably, the defendant will have legal advisers involved, and we will work with them to provide whatever specialist support is required to obtain the best position for their client.

Civil Investigations

An enquiry under the civil code is better suited than most to our adage ‘start with the end in mind’ since there is a real likelihood that ‘the end’ in this instance is going to be a settlement meeting with the tax inspector at which the amount of tax, interest and penalty, together with payment terms, are to be discussed and agreed.

No matter how far distant it is likely to be, it is important to have this meeting at the forefront of one’s mind throughout the handling of the investigation. Experience shows that the evidence and information which is provided in support of the client’s explanations to address allegations of tax loss will have a significant bearing on the amount which is ultimately payable. Furthermore, the manner in which the enquiry is handled – in which trust and respect between the parties is paramount – will affect the level of financial penalty levied.

So, from the client’s point of view, proper handling of any tax investigation is required to keep stress levels and financial liabilities to a minimum.

For more information, or to arrange an initial meeting to discuss a specific issue, please contact us.