Answer

1. F

   Facts

   A Sec 143(2) notice tells you that your return is selected for scrutiny. Sec 142(1) notices then ask specific questions and documents. They are part of the same assessment and both need replies.

2. P

   Provisions and law

   • Sec 143(2) (now Sec 270(8))Notice that the return is selected for scrutiny
   • Sec 142(1) (now Sec 268(1))Officer can call for a return, accounts, documents or information before making an assessment
3. A

   Analysis

   Reply to the Sec 143(2) notice by acknowledging it and, if asked, filing documents. Then answer each Sec 142(1) questionnaire. The scrutiny reason in the first notice, such as large capital gains or a big refund, tells you what to focus on. Missing a Sec 142(1) reply can still lead to a best judgment order even though scrutiny started with Sec 143(2).

4. C

   Conclusion

   1. 1Read the scrutiny reason in the Sec 143(2) notice
   2. 2Answer each Sec 142(1) question point by point
   3. 3Attach documents linked to the scrutiny reason
   4. 4Keep all replies in one folder by date

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