A Guide on How to Survive a Tax Investigation

Dealing with tax investigators can be very stressful and can lead to an emotional roller-coaster ride.  In the first few minutes of realization – after opening the letter from the taxman – denial and terror are common reactions, followed by bitterness and regret. Because of this, it’s paramount to take a comprehensive tax investigation insurance which will cover for the costs that you incur during investigation. While you’re looking for a good insurer, here are tips to help you survive a tax investigation.

tax investigation insurance

Stay calm

Handling tax can be very complicated, so you need to stay calm and look for a financial adviser such as a tax investigation insurance expert. You need someone on your side, someone who has vast experience in handling tax investigation issues and someone who knows everything about the taxman.

Do not destroy your evidence

Hiding or removing all your documents may lead the taxman to assume something fishy is going on. If you have not been keeping records, ensure that you get replacements such as your bank statements and work with your adviser to come up with estimates to fill any gaps.

Seek clarification

If you don’t understand certain questions, seek clarification from the tax inspector. According to law, tax inspectors are supposed to work amicably with the clients so as to resolve a dispute.

Do note over promise or under deliver

If you can’t meet deadlines, contact the revenue and explain your circumstance and agree on another timescale. Remember, if you continue to miss your deadlines, you are increasing penalties and this may lead to demands for more information.  Similarly, if you wish to pay your debt in installments over a stipulated period of time, inform the taxman and be truthful about when you can. Avoiding payments can lead to serious consequences.

Don’t assume

Never assume. For instance, that the tax investigator doesn’t know about your offshore bank accounts. The revenue authority has vast amount of information in custody, and can still get more details from third parties all over the world. Therefore, if the investigation agency is scrutinizing your financial reports, then it is for a reason. If your returns have errors, don’t assume that is the only thing that the revenue authority is interested in; the revenue authority would want to know if the same error occurred in the previous years. read more

How Technology Shapes Investment Management

Today, technology is one of the driving forces towards the skyrocketing progress of investment management. For investment management firms, this is even a bigger leap because of its long-term effect on consumer behavior. Private investors, notable advisors like Brian Gaister, and institutions aren’t only going to benefit from automation—their investing ethics may also change.

How did technology help investment managers?

In their published document, Investment Management Outlook for 2017, Deloitte identified four types of technology that help clients and firms like Brian Gaister’s Pennington and Partners Co:

1. Artificial intelligence in machines. Globally-recognized investment management companies are now using artificial intelligence together with big data analytics to: generate alpha by providing analysis for investment selection and improve cost-effectiveness by giving leverage to pricey analyst resources.

2. Blockchain. Blockchain is a software program founded by Peter Smith and Nic Cary. It’s a system that manages global transactions from over 140 countries and is used by investors from Wall Street and Silicon Valley. Blockchain has real time tracking data available for users. It’s valued by the investment management industry for its convenience and cost-effectiveness. Also, it has tools for software developers. Click here Brian Gaister

3. Robotic process automation. Investment managements who adopt unique robotic process automation can streamline their front and back-office transactions. Critical tasks that are usually operated manually are now made easier by RPA. This saves company time and adds more productivity to the high-priority tasks.

4. Robotic advisers. Are humans going to be finally taken over by robots? Seems like it, but human advisers shouldn’t be worried. Robotic advisers are only used to automate portfolio management advice, especially with large corporations. Nonetheless, they are a huge help in improving fiduciary standards between firms and clients. If their computing power can be improved, they will be more suitable for retail and institutional clients. read more