Company tax returns ― HMRC powers

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Owner-Managed Businesses

Guidance

CTSA enquiries and compliance checks

HMRC has the authority to investigate the tax affairs of all taxpayers. It can either open a formal enquiry into a specific tax return, or it can make a more general compliance check to verify a tax position, which need not be in relation to a specific tax return.

Enquiries

CTSA enquiries are formal procedures that take place to ensure that companies submit corporation tax returns which are both complete and correct.

An enquiry can start for a number of reasons. The enquiry could be ‘random’ ― generated by HMRC’s computer systems. A return could be subject to a ‘selected’ enquiry where HMRC has identified something on the return which it does not agree with, or wishes to ask further questions about.

HMRC also undertake ‘routine’ enquiries, although these typically involve very large companies, where the amount of profits and tax involved warrant a more collaborative approach to ensuring compliance.

Selected and routine enquiries may be avoided by the company making complete and thorough disclosure

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Anton Lane

Managing Partner, Edge Tax LLP , Corporate Tax, OMB, Employment Tax, International Tax, Personal Tax, IHT Trusts and Estates

I started my career helping to sort out tax problems for high net worth individuals, corporations and high profile clients under investigation for suspected serious fraud at Ernst & Young. I specialised in anti avoidance legislation targeting offshore structures and held senior positions with large offshore fiduciary service providers. I established the Edge brand over a decade ago and in 2012 focused the main business on managing tax risks, handling suspected serious fraud cases and assisting clients and advisers with disclosures to HMRC.

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