How far can Revenue go back in an audit ?

[MeathCommute]

Just a general question. As banks only hold customer records going back 6 years, can a Revenue audit only go back 6 years as well ? If an accountant has done the books for 2006, can the revenue turn around in say 2020 and conduct an audit of 2006 ?

 

[smeharg]

When the offshore accounts investigations were in full swing I had clients who got statements from banks going back to the 80s.

Revenue can't conduct an audit prior to 6 years. But if they suspect fraud they can go back as far as they like....

 

[MeathCommute]

When the offshore accounts investigations were in full swing I had clients who got statements from banks going back to the 80s.

Revenue can't conduct an audit prior to 6 years. But if they suspect fraud they can go back as far as they like....

Thanks for that. But if the client cannot get back statements greater than 6 years old, what proof is there of anything before that ?

 

[Gulliver]

Thanks for that. But if the client cannot get back statements greater than 6 years old, what proof is there of anything before that ?

In certain circumstances, the burden of proof may be on the taxpayer. Perhaps best to hold bank statements for more than 6 years if you are sure that all is in order