From: "Doug Ramage" 
Newsgroups: uk.finance
Subject: Re: Taxman Question
Date: Tue, 12 Apr 2005 10:15:54 +0100


"Wondering"  wrote in message 
news:Dsu6e.18409$S9.2799@newsfe5-gui.ntli.net...
>
> "Doug Ramage"  wrote in message 
> news:xPadnWLmcJs6yMffRVnytg@brightview.com...
>>
>> "Out of interest."  wrote in message 
>> news:6gc6e.20667$pA6.17179@newsfe1-win.ntli.net...
>>> Legally how far back can the taxman look into someones past affairs if 
>>> it
>>> appears they have failed to declare earning? i presume its around 5 
>>> years ?
>>>
>>> if a person had undeclared there income by 12,000 per year for 4
>>> years , would the taxman take what he was owed would this be the basic 
>>> rate
>>> of tax plus interest and a fine ?
>>>
>>
>> IIRC, it's 20 years for fraud and 12 for neglect (6 + 6). And 3 years for 
>> deceased persons.
>> -- 
>> Doug Ramage
>>
>> [Watch Spam Trap]
>>
> Doug , when you mention neglect what do you mean by 6+6 ?
>

Those were the old rules allowing the Inspector to go back a further 6 years 
from the last year where neglect was discovered.

However, looking at section 36 TMA 1970 it includes "negligent conduct" as 
well as fraud, so the time limit of 20 years covers both.
-- 
Doug Ramage

[Watch Spam Trap]