This was a tax investigation that HMRC opened into a retail outlet. Having considered the case and the background, we invited HMRC officers for a meeting at our client’s premises where we explained in detail our client’s position and the nature of the trade. The HMRC inspectors asked a number of questions and were satisfied after the first meeting and decided to close the case after a few weeks without making any adjustments. The client was naturally very nervous at the beginning and was quite pleased with the outcome. We are grateful to the HMRC officers for their cooperation and quick understanding of our client’s business.
Our analysis: This case could have dragged on for a long time and is a good example of cooperation. The main factors for early closure were establishing a good relationship with the HMRC inspectors and providing the required information in an effective manner.