More Facts Resolve Tax Risks –

A Case of Skeletons in the Cupboard –

THERE ARE FREQUENTLY whispers in the corridors of power: “Can you believe we did that transaction eight years ago? If the authorities even join all the dots, many eyebrows will be raised and some heads may roll!”

This commentary, no matter how unfounded it might appear, cannot go unnoticed by the tax team and part of a Tax Risk Management strategy process. Nothing is more dangerous than unsubstantiated rumors which have a habit of metamorphosing into new convoluted versions as the years tick on. Confront these transactions.

Firstly, go to the most reliable sources. Interview under legal privilege the original participants in the transaction. Access all documentary evidence . Get the most accurate actual factual version. Then, from this starting point, determine from the best facts available what the real and actual story is. So often the suspicion of “fraud ” or “unlawful” is totally unfounded, burying once and for all the unfounded rumors and suspicions.

On occasion a fault may be uncovered which can then be dealt with in the normal course of the Tax Risk Management process.

In accordance with Circular 230 Disclosure