Tangled web

I have recently taken on a new client just as HMRC were starting an investigation into his previous tax affairs going back over the past ten years. I have been unable to obtain previous accounting records — untraceable previous agents etc. — and the client is unable to produce any. There appears to be previously undeclared income from property businesses and the usual substantial deposits into bank accounts that need to be identified.

The Inspector has used my accounts for recent years as the basis of an 'RPI'ing back' exercise and we could be looking at undeclared income running into seven figures.

Although there appears to be nothing technically complex tax-wise the sheer scale of this is making me rather nervous. I am not sure whether the client is being totally truthful with me; although following an initial meeting with the client and the Inspector ...