Thomas Osborne

𝗠𝗶𝘀𝘁𝗮𝗸𝗲𝘀 𝗶𝗻 “𝗧𝗮𝘅 𝗔𝘂𝗱𝗶𝘁 𝗥𝗲𝗽𝗼𝗿𝘁𝘀" TAR / Form 3CD is prescribed u/s 44AB of Income-Tax Act 1961 On occasions, errors can creep into TAR Recent Rulings of Tax Tribunal highlight some real-life mistakes: 1️⃣ 𝗞𝗼𝗽𝗿𝗮𝗻 𝘃𝘀 𝗗𝗖𝗜𝗧   • Clause 14(b) —->”Increase in Purchase Cost on account of inclusion of GST”   • A data-entry error occurred—>Instead of reporting ₹26,01,46,197, Form 3CD showed ₹2,60,14,197 (👉CAREFULLY OBSERVE: The digit “6” was missed between “4” and “1”) 2️⃣ 𝗦𝗮𝗶 𝗖𝗼𝗺𝗽𝘂𝘁𝗲𝗿𝘀 𝘃𝘀 𝗔𝗗𝗜𝗧   • Clause 33 —->"Deductions admissible under Chapter VIA"   • Deduction u/s 80JJAA was missed to be reported 3️⃣ 𝗜𝗧𝗢 𝘃𝘀 𝗦𝗮𝗺𝗯𝗵𝗮𝘃 𝗦𝗵𝗲𝗹𝘁𝗲𝗿   • Clause 40 —> "Total Turnover of the Assessee for the Year of Reporting"   • Per facts, Turnover of "Prior Year" was ZERO, while the Turnover in the "Year of Reporting" was ₹25,52,69,395  • But, by oversight, “Turnover for the Year of Reporting" was typed as ZERO 4️⃣ 𝗦𝗣𝗦 𝗔𝘂𝘁𝗼𝗺𝗼𝗯𝗶𝗹𝗲𝘀 𝘃𝘀 𝗜𝗧𝗢   • Clause 16(d) —> “Amounts not credited to the Profit and Loss Account”-->"Any other Item of Income"   • Income of ₹54,17,993 was wrongly reported in Clause 16(d)—->even though it was already reflected in P&L A/C (👉Correct reporting should have been ZERO) 5️⃣ 𝗔𝗖𝗜𝗧 𝘃𝘀 𝗙𝗶𝘁𝗿𝗶𝘁𝗲 𝗣𝗮𝗰𝗸𝗲𝗿𝘀   • Clause 21(g) —> "Details of amounts debited to the Profit and Loss Account” —> "Particulars of any Liability of a Contingent Nature"   • Contingent Liability of ₹4.10 crore was not debited to P&L A/C (nor any tax deduction was sought to be claimed in ITR)   • Yet, ₹4.10 crore was reported in Clause 21(g) (👉Correct reporting should have been ZERO) ⚠️𝗪𝗛𝗬 𝗔𝗥𝗘 𝗠𝗜𝗦𝗧𝗔𝗞𝗘𝗦 𝗖𝗢𝗦𝗧𝗟𝗬?   • Due to errors in TAR, Taxpayer can suffer 𝘛𝘢𝘹 𝘈𝘥𝘫𝘶𝘴𝘵𝘮𝘦𝘯𝘵𝘴 (like in the above rulings) - even if TAR has been revised to rectify error   • Although such 𝘢𝘥𝘥𝘪𝘵𝘪𝘰𝘯𝘴 are eventually deleted in Appeal, Taxpayer is unnecessarily dragged into long & needless litigation ✅ 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆   • Form 3CD forms the backbone of ITR processing (CPC) & Scrutiny Assessments   • Hence, accuracy in TAR is imperative ✌️𝗕𝗲𝘀𝘁 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗲𝘀 𝗳𝗼𝗿 𝗙𝗬 𝟮𝟬𝟮𝟰-𝟮𝟱 (𝗗𝘂𝗲 𝗗𝗮𝘁𝗲 𝗼𝗳 𝗙𝘂𝗿𝗻𝗶𝘀𝗵𝗶𝗻𝗴 𝗧𝗔𝗥: 𝟯𝟭 𝗢𝗰𝘁 𝟮𝟬𝟮𝟱)   • Diligently follow Guidance Note of The Institute of Chartered Accountants of India: 👉https://lnkd.in/dEMN3XwD   • Double-check every entry in Form 3CD   • Ensure alignment between Financials, TAR & ITR   • Reduce or eliminate 𝘔𝘢𝘯𝘶𝘢𝘭 𝘞𝘰𝘳𝘬 —> Wherever possible, Automate TAR filling —> Use Tax Technology —> Build a ‘bridge’ between Accounting System & TAR 👇𝗢𝘃𝗲𝗿 𝘁𝗼 𝘆𝗼𝘂 Have you seen ‘TAR errors’ cause tax trouble? What are the best practices adopted by you? Share in the Comments - Learning from experiences benefits all (ITAT rulings can be viewed at Taxmann 👉https://lnkd.in/dYYuAsNd. Citations are mentioned in Comments) #TaxAudit #Form3CD

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***Head of Finance recruitment*** Old market assumptions no longer apply. I recently partnered with the CFO of a high growth listed business to recruit a Head of Finance. It’s a critical hire. Lots of acquisitions driving growth. Knowing how year-end pressures can impact candidate engagement, I advised starting the search early. We moved quickly and delivered a strong shortlist. The candidates were technically sound, all capable. But something didn’t click with the CFO and I agreed. Rather than settle, I suggested bringing in a professional contractor. It gave us breathing room to find the right long-term fit. When we re-ran the search just weeks later, the difference was night and day. Many of the candidates didn't surface during our first round. The only thing that changed was the timing. Pre-COVID, I wouldn’t have expected high-calibre candidates to consider a move during year-end. But today, the market is less predictable. Old assumptions no longer apply. So my advice is this: Don’t rush permanent hires. If needed, run the search twice. Use interim solutions to protect business continuity. In this case, the CFO now has real choice and full confidence in the decision ahead #cfo #GMFinance #reogroup

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Pretty brief but interesting snapshot from BDO I read this morning. No significant growth in M&A activity but reassuringly it was pretty much flat from H1 2024. Money is still coming from Trade, PE very quiet. H1 deal volumes have remained fairly static The unsurprising rise of AI and automation UK continues to attract investment from a diverse set of overseas buyers but is still dominated by UK trade acquirers H1 has seen an increase in unemployment levels from 4.6% to 4.7% Last year, H2's activity was spurred on by pre-budget activity so year on year H2 comparison is likely to be down, in my opinion. See the report here if you're interested. https://lnkd.in/eQEg9JwP

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Your Tax Return Says One Thing. Your Instagram Says Another. Guess Who Notices? Your accounts show £14,000 of profit. Your Instagram shows a £75k Audi, a week in Dubai, and dinner at The Ivy. Spot the problem? So does HMRC. HMRC now uses AI to cross-check lifestyle against declared income. Social media, online ads, even tagged photos - it’s all data. If the maths doesn’t add up, the algorithm flags it. Sometimes it’s innocent - the Rolex was borrowed, the car was leased, the trip was business. But AI doesn’t care about context. It just kicks off an enquiry. So what should you do? • Make sure your declared income matches reality • Remember: social media is public and permanent • Be ready to explain if the lifestyle looks bigger than the numbers Tax isn’t just about receipts anymore. It’s about the story your digital footprint tells. ⸻ If you’d like a free copy of my full 89 Tax Tips guide, just send me a PM and I’ll get it over to you. #TaxTips #HMRC #DigitalTax

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