In every enquiry into a business, HMRC will seek to subject the accounting records to data interrogation. Tony Monger (Mazars) explains what HMRC is looking for.
As long ago as 1988 when computerised accounting systems were still comparatively rare legislation was introduced to enable HMRC to obtain computer data. The legislation at FA 1988 s 127 classified computer records as a ‘document’ under any provision of the Taxes Acts which allowed a tax inspector to require a taxpayer to produce a document or allowed the inspector to inspect or take copies of documents. The same section allowed HMRC to require the person who owned or operated a computer to ‘afford [the inspector] such reasonable assistance as he may require’ to enable the inspector to obtain inspect or take copies of computer documents.
The same powers continue to exist...
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In every enquiry into a business, HMRC will seek to subject the accounting records to data interrogation. Tony Monger (Mazars) explains what HMRC is looking for.
As long ago as 1988 when computerised accounting systems were still comparatively rare legislation was introduced to enable HMRC to obtain computer data. The legislation at FA 1988 s 127 classified computer records as a ‘document’ under any provision of the Taxes Acts which allowed a tax inspector to require a taxpayer to produce a document or allowed the inspector to inspect or take copies of documents. The same section allowed HMRC to require the person who owned or operated a computer to ‘afford [the inspector] such reasonable assistance as he may require’ to enable the inspector to obtain inspect or take copies of computer documents.
The same powers continue to exist...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
