Threatened

What should you expect if someone threatens to report you to the taxman?

Threatened!

The threat isn't uncommon yet many people still believe that an anonymous phone call to the taxman will give just cause for an investigation. Even if you have something to hide it is very unlikely the taxman will start an investigation just because of an anonymous phone call.

It is very rare that a threat is even carried out but the taxman still receives plenty of allegations. Most contradict themselves due to the poor nature of the structure; others lack any evidence and are usually just an attempt at vengeance or retribution. Some of the allegations don't even make it that far as they got lost in the system and never make it to the correct tax office. Lastly the taxman will always be dubious about accepting such allegations due to the fact they are staying anonymous, perhaps they have something to hide? Even if the accusation makes it way to the right person and makes sense its unlikely the taxman will suddenly appear at your doorstep unless it is very serious fraud. If the call is anonymous or not, it isn't likely to cause you too many problems.

Following Procedures

To launch a tax investigation the taxman has to follow a set procedure, in general an accusation won't trigger this. The agency can't respond to every allegation, as they would soon run out of resources as like any government agency they have limited resources. Luckily an unsubstantiated complaint can't change your tax liability.

Black Mark

If the allegation is severe enough it may get you a 'black mark', and if you get too many of these the taxman may decide it is time for an investigation Although most businesses are chosen randomly the taxman may have what he needs to select someone for a full-scale investigation if they have too many 'black marks'.