HMRC is entitled to obtain and examine electronic records. It applies a number of interrogation techniques to the data with the intention of identifying errors in the tax treatment of the transactions or the accounting systems and processes. Extrapolation of even a small error can result in substantial tax consequences. Poor systems can result in a high risk rating and annual enquiries. Better systems and processes, and better training of data processors, can provide defences against HMRC challenges.
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HMRC is entitled to obtain and examine electronic records. It applies a number of interrogation techniques to the data with the intention of identifying errors in the tax treatment of the transactions or the accounting systems and processes. Extrapolation of even a small error can result in substantial tax consequences. Poor systems can result in a high risk rating and annual enquiries. Better systems and processes, and better training of data processors, can provide defences against HMRC challenges.
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:
