HOW TO FACE THE TAXMAN                                                                   

Everyone dreads a taxman and always wished to avoid him but the fact is that taxmen are also human beings, part of society, doing the job assigned to them to the best of their ability. God forbid, let not a situation come to face a taxman, however let there be no fear if one happens to face one. This article is dedicated to various aspects of the situation warranting facing a taxman

1.THE NEED TO FACE TAX MAN

2.MENTAL PREPARATION

3.TYPES OF TAXMEN

4.PRESENTATION-DO’S and DON’TS

5.PURPOSE

6.CONCEPTS

1.THE NEED TO FACE TAX MAN

The situations may be as concerned party or as third partyor during course of enquiry, scrutiny, survey or search or with a purpose.

An enquiry could be direct or discreet, remember, a taxman conducts an enquiry never in a casual manner. A lot of homework is done before embarking on an enquiry be it a search or a survey. Of course sometimes misfires do take place but not intentional

2. MENTAL PREPARATION

When encountered with a taxman listen first, seek clarification, ascertain identity if needed, do not presume, keep calm and open mind without any preset notions, all are not bad and know your perils.

So,understand the purpose of enquiry before opening your box of information,better safe than sorry. Follow general courtesy, decency and decorum. Prevention is better than cure.

Analysis of issues before jumping into conclusions is vital.

Before replying, examine various angles of various authorities. That is whyit is better to pass through fire on representative’s table than to face the heat on authority’s table. Short cuts, procrastination, suppression, vague,   manufacturing evidences- don’t work.

Know your representative and taxman well

The representatives and taxman both are part of society. All are not gentlemen as you perceive and all are not crooks as you perceive. Yours as well as their credibility counts.

You know what you have done – knowingly or unknowingly

Inform representatives fully so that he is in a better position to guide you. Just because you have engaged a person, you cannot remain aloof; ultimately it’s your baby. Hence check periodically, if need be take second opinions. Understand the said and the unsaid. Taxman can easily see behind the veil.

When in doubt , err on the side of revenue

 3.TYPES OF TAXMEN

As stated earlier taxman is a part of society you get a spectrum of personality that of same person at different times.

Broad types are gentleman, academic, cowards, beginners, seasoned, crooks, people with open and hidden agenda, some are reasonable and some unreasonable, some are protocol conscious.

The gentlemen are clear in their thought and are focused on subject with a view to resolve and proceed.

Academic persons are not practical but sticker of rules; they give more importance to words than the spirit of law

Cowards are afraid to take decisions; they might have been bitten once hence shy twice. They prefer to procrastinate than to decide.

Beginners are fresh on seat probably tasting power for first time, ready to download all their ideas on the very first person they come across. It’s your luck

Seasoned people know the tricks of the trade, they will hit the nail on the head. They are both practical and academically sound. They know what they are doing.

Crooks are with one point programme to exploit every possible opportunity; they can go to any extent

Each one have their agendas clear some openly talk others hide it behind curtain of others but you can see their ulterior motive

Some are very reasonable and explain to you the consequences and help you with minimum damage. Their view is that “collect not a paise not due and don’t spare a paise that is due”

Some are very unreasonable, more loyal than the king. Their view is “once the sword is drawn it will go back to sheath only with a blood stain on it”. They can’t accept defeat gracefully even when they know that they are not right.They mostly fall in the category of monetary or power corrupt.

Protocol conscious people run to their bosses invariably become puppet in the hands of bosses

4. PRESENTATION-DO’S

Explain your stand and seek advice, this attitude helps you to understand your stand as well as, it satisfies the ego of other side.

It is better be plain than being technical or complicated as it can offend the person on other side

Your presentation should be sincere, full and true. Explain your impediments both patent and latent that those that can and cannot be perceived by person on other side in such case the person on other side my travel an extra-mileto arrive at a reasonable, logical conclusion

PRESENTATION-DON’TS

Never act in any manner which can be perceived as threatening.

Speak softly, audible and not loud, even if your voice is loud even otherwise

Know your purpose of visit do not behave in any manner which tend to give impression that you have imposing mannerisms, it may hurt ego.

You may be more smart or knowledgeable, but it is not the place and time to display your superiority, it can be mistaken to infer that you are acting smart

Keep your ego in your pocket securely till the situation is tided over, display of ego can lead you to no advantage but can definitely harm you

Give only called for information, giving too much information may expose you to unexpected turn of events which may invite unwanted trouble

Being over submissive/ over polite may lead to infer that you are artificial and may result in further digging in unexpected areas.

5. PURPOSE

The purpose of enquiry may be fact finding or fault finding or confirmation of information, hence be precise and cautious. Never extend the meeting from your side .Show your willingness to cooperate with the proceeding, it shows your sincerity as well as insolates you from any unnecessary perils

6.CONCEPTS

Always remember that

“Right is always right – even if nobody does it

Wrong is always wrong – even if everybody does it

Right does not become wrong –just because nobody does it

Wrong does not become right–just because everybody does it”

Be clear about it– legally &morally (rights and wrongs)