In a case concerning privacy and the intrusive nature of the revenue the Special Commissioners declared “the inspectors request was intrusive & the taxpayer should NOT be required to divulge details of personal expenditure if that could be avoided”.
If the Inspector has ALL the business records and no transactions have taken place between the business and your private account and he presses for your personal records in a given time then he is on:
- A “Fishing Expedition”
- Unfair Deadlines
The Case (Taylor-v-Bratheton)
Tip 1: If you object to the taxman looking at purely personal information, INSIST you are treated the same way as the taxpayer in the above mentioned case – ie: BUSINESS RECORDS FIRST, MR TAXMAN!
Tip 2: Use the “Information trapped inside the computer” or “we’ve changed our computer” excuse as reasons to only supply part of business information requested by the taxman.
Warning: Denying access to personal documents because they actually contain evidence of diverted profits is VERY silly and wrong!
(applies to Directors equally)
You are NOT required to divulge personal information if it can be avoided!