The European Union recently announced that it was launching a tax investigation into fast food giant McDonald’s, which is reported to have avoided paying more than €1 billion in tax by exploiting a controversial royalties loophole through Luxembourg.
Meanwhile, tech colossus Apple is also going to be put under the tax man’s microscope in both Ireland and Australia with regards to the way it pays taxes on its profits in these countries.
What is clear from stories such as this, which regularly consume column inches in national newspapers, is that tax is never all that clear cut – flaws, loopholes, irregularities, confusion, manipulations and general ignorance can often result in an individual or business becoming the subject of a tax investigation.
Whatever the particular reasons for a tax investigation being launched, there is no doubt that they are complicated and stressful times. In the UK, understanding how HMRC operates and how to best defend oneself against a tax probe is extremely important if things are not to escalate, and this is where the expert advice and experience of forensic accounting services can prove so valuable.
Frenkels Forensics is often called upon to help defendants in tax investigations. In some instances the defendant will need their innocence proving, in other situations there may have been some wrongdoing – either deliberately or accidentally – and it is important that the alleged amount to be repaid is fair, with penalties commonly over inflated.
Frenkels Forensics can offer important insight into how to handle the case and can also produce documents and reports to provide a clear breakdown of the finances and accounts in questions. This will all aid in bringing tax investigations to a smooth and fair conclusion.
For expert financial help with any tax issues contact Frenkels Forensics for an independent appraisal.
By Vitek Frenkel – find me via Google+.