28th August 2008 16:21
Basic Account Holder
Inland Revenue tax investigation advice needed
Not sure if this is the correct place to post this but I couldnít find a relevant section relating to my query so I posted it in this section?
I have been the subject of a random Inland Revenue tax investigation recently where they have discovered that I made a sizable cash deposit into my personal account approximately 4 years ago. At that time I was in the process of purchasing a house. As it would have been my first house I didnít have enough money to pay for the deposit. Therefore I borrowed money from friends & family and combined it with my own personal savings, which I then deposited into my account. Unfortunately the house deal fell through. As I no longer needed the money I simply withdrew it from my account and gave it back to the people I borrowed it from.
The Inland Revenue asked that I provide information as to how I acquired this money? I gave details of the people who I borrowed the money from to the Inland Revenue, but they do not seem to accept this as I canít show a paper trail (because it was a cash deposit).
Now in this type of investigation is it a case of 'guilty until proven innocent', whereby I have to prove to the Inland Revenue where the money came from? Or is the onus on the Inland Revenue to prove me wrong with evidence to the contrary?
Iím just looking for a little advice as to where I stand legally on this matter and what my rights are?
28th August 2008 17:14
Re: Inland Revenue tax investigation advice needed
I think you need the advice of a forensic accountant
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