EM0093 - Introduction: types of enquiry: random

A very small proportion of returns will be taken up for full enquiry on an entirely random basis. These cases are randomly selected by KAI from across the SA population, and include both business (SME only) and non-business taxpayers.

The main reasons for taking up random enquiries are to

• evaluate the amount of non-compliance in the SA population and improve our estimates of the tax gap,
• inform the development of our compliance strategy,
• provide additional information to help us with our risk assessments, and
• ensure that we check all areas of the SA population, not just those perceived as higher risk.

You should never reject a random enquiry case because it appears to be low risk. It is extremely important that all cases are taken up because they provide essential information about the SA population. As we focus more on the larger and higher risk cases, we need some assurance that this strategy is working, by monitoring levels of non-compliance across the whole population.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Random selections should be worked in exactly the same way as risk-based full enquiries. They should not be distinguished from other enquiries in dealings with the taxpayer or agent. Your aim should be to identify and address all the significant risks in the same way as in any other full enquiry, and you should obtain and examine the records you reasonably require for this purpose. You should make sure that the taxpayer has claimed all the reliefs and allowances to which he or she is entitled which might be beneficial.

The records you examine should include those underlying the return. How far you should go beyond these will depend on the circumstances of the case.

When dealing with the taxpayer or their agent no distinction should be made between a risk-assessed case and one selected at random.