Every dispute with Inland Revenue in practical terms begins with an Investigation by Inland Revenue. During this stage they will seek information. While there is a legal requirement to provide what they seek there are limits to Inland Revenue’s information gathering powers and it is important to make sure that Inland Revenue is only provided with what they are legally entitled to. At this stage it will start to become clear what issues Inland Revenue are interested in. If they appear to be misunderstanding an issue or transaction this is the most cost effective point at which to correct those errors.
It is important that you get good timely advice during this stage of the investigation so as to be in the best position possible with respect to the balance of the dispute.