Operation Edgewood is an investigation into all of the clients of Sussex-based accountants Christopher Lunn & Co (CLAC). This large-scale investigation is being run by HMRC’s Local Compliance Fraud team based in Leeds.
The HMRC Operation Edgewood team have written to all of the clients of CLAC requesting that they make a disclosure of any tax irregularities. In the latest development in the case HMRC have delivered a broadside to some of the defence points being made by CLA C. They have written to all agents of Operation Edgewood clients stating the following:
“Dear Agent, I am aware that “CLAC” have stated that our letters are illegal. HMRC completely rejects “CLAC’s” view and vigorously defend its position on this issue. HMRC has the right to make enquiries outside of the normal enquiry time limits when it has been discovered that there has been either: (a) Income which ought to have been assessed to income tax, or chargeable gains which ought to have been assessed to capital gains tax; or (b) That an assessment to tax is or has become insufficient, or (c) That any relief which has been given is or has become excessive.
In opening an enquiry under the discovery provisions we must give the reason why we believe there has been an under assessment of tax. From information obtained HMRC believes a, b, or c applies and we can open an enquiry provided we give our reason for dissatisfaction. HMRC has the legal right to make an assessment for loss of tax under Section 29 Taxes Management Act 1970 (individual), Section 30(B) Taxes Management Act 1970 (partnerships), Paragraph 41 Schedule 18 FA 1998 (company). HMRC has the legal right to make discovery assessments going back up to 20 years where evidence is held to show deliberate behaviour by either a person or a person acting on their behalf.”
How can Lynam Tax enquiry experts help me?
Lynam Tax investigation specialists have already assisted a number of Christopher Lunn & Co clients in regularising their tax affairs. We specialise in assisting taxpayers with disclosures to HMRC. We have a superb track record of reducing the hassle and the penalties involved, and helping clients avoid the risk of prosecution.
For expert advice please ring today for a free, confidential, discussion.
Phone Paul Lynam on 0845 640 39997