Friday, January 08, 2021

A dodgy client reacts.....

Last year I saw an anonymous report from an accountant whose client was being interviewed under caution by HMRC. The conversation warrants recording on this blog

HMRC were alleging that the client had been buying ‘childrens’ clothes from a wholesaler who was zero-rating them. But upon inspection, these were quite clearly adult clothes. 

In the first interview, when the client was asked if his business had ever acquired clothing from said wholesaler, he answered "No. Never heard of them".

When presented with photographic evidence of his van entering and leaving the wholesaler’s premises, the client suddenly remembered that he had collected a few samples of clothing from them, but had decided against entering any supply agreement. 

HMRC then presented a further set of photographs that showed the same van in the same warehouse again, seven days later. 

“It was probably to return the faulty clothes!” claimed the client, panicking under the pressure. 

After another two sets of photographs were proffered onto the table, showing a further two weeks worth of evidence, the HMRC officer asked the client for a final time: 

“Has your company ever bought 'childrens’ clothes from the said wholesaler?” 

To which the client replied: “How many more photos have you got?”

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