Mark McLaughlin looks at whether a taxpayer can find out if an HMRC enquiry has been opened as the result of an accusation made by a third party.
When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random.
Random or targeted?
However, HMRC normally opens an enquiry due to information that there is something wrong with the return. For example, HMRC’s ‘Connect’ computer system collates information from a multitude of sources (e.g., council tax, DVLA) to assist in identifying undisclosed or fraudulent activity. In addition, HMRC sometimes receives ‘tip-offs’ from third parties (e.g., disgruntled ex-employees,
