When may the head of a local government extend a tax investigation beyond the period first set, and from what day does that extension run?
General information · Not legal advice
Material to check
In a practice file we read the notice opening the tax investigation, the document stating the reason and period of any extension, and the papers showing when the stated reason ceased, such as delayed or refused books finally produced, a counterparty or financial check completed, or an application by the person under investigation.
These are types of material to look for, not evidence already verified by PRO SE.
Where readings differ
One reading takes the provision in two steps: the head of the local government must fix the investigation period within the period the provision sets, having regard to the taxes, business types, scale and difficulty of the investigation; under the proviso the period may be extended, and only within the period the provision sets counted from the day the reason for extension is resolved, where any one of the listed reasons suffices.
Another reading stresses each ground's own conditions: the taxpayer must manifestly evade the investigation; the counterparty or financial check must be needed; a suspicion must be spotted or the investigation converted to a violation case; the case must fall under a reason the head prescribes, such as the investigation being interrupted by natural disaster or labour dispute; the person under investigation must apply to explain a suspicion; and the taxpayer protection officer must see a need for further fact-finding on that explanation.
Your judgment
If the document states the reason but not the date on which that reason was removed, what in the file could fix the day the extension period began?
PRO SE does not make this decision or keep a case record on this public site.When to reconsider
We look at this again if the provision is amended to define when a reason for extension is resolved, or if a court decision requires a particular document to show that resolving date.