Code Of Pratice 9
Details
Code of Practice 9 investigation is used by the HM Revenue and Customs (HMRC) Fraud Investigation Service (FIS) as part of the Contractual Disclosure Facility (CDF). The issue of Code of Practice 9 is undertaken where HMRC suspect serious tax evasion and to recover the tax on a civil basis rather than pursue a criminal tax investigation with a view to prosecution. Code of Practice 9 is a leaflet with guidance and reflects the HMRC position at the time of writing.
HMRC Investigation Process
Under the CDF process, HMRC’s FIS review the information in detail to identify those suspected of serious tax fraud and criminal investigations before issuing the COP9. The HRMC distinguishes the underpayment of tax that is done deliberately and fraudulently.
The taxpayer should be aware of the complex process and implication of being offered the facility by HMRC and will have only 60 days to accept or reject the CDF invitation.
HMRC will require information and documentation related to:
- If the taxpayer accepts the offer of CDF – they must formally admit the tax fraud and disclose the irregularities deliberately caused by them, including all the fraudulent defalcations. In case any additional risks are identified during the course of the investigation, HMRC will still investigate further findings.
- If the taxpayer rejects the CDF process – HMRC will investigate on a criminal or civil basis. The rejection letter from the taxpayer is used as evidence for criminal proceedings by HMRC. In this case, specialist advice should be obtained to manage the HMRC investigation proceedings.
- Failure to respond within the 60-day time limit – When the taxpayer fails to respond within the 60-day time limit, then HMRC will treat this as the rejection of the offer.
HMRC pursues the suspected tax fraud case on a civil basis and seeks to recover the lost revenues when COP9 notice is issued. To take part in the investigation process, the individual on receiving the COP9 notice must admit to not declaring all of their income.
HMRC seeks prosecution upon the failure to manage the COP9 process appropriately. It will lead to the case referred back to the criminal investigation team, because tax evasion is a criminal offense of cheating the Public Revenue and carries the maximum prison sentence.
How Can We Help You!
People might go wrong in their dealing with HMRC, or might not know whom to seek help in resolving the tax disputes.
The tax advisors with us specialize in resolving the taxpayer’s problem with HMRC. We will support you in dealing with all forms of tax investigations and disputes. And, if an agreement is not attained, our tax advisors can also assist you with taking matters to Tax Tribunal.
As the COP9 dealing involves risks of criminal prosecution, it is imperative to ensure specialist participation. Proper management of HMRC helps in reducing the time taken to resolve the dispute along with a reduction in the amount paid as tax, interest, or penalty.
We extend our expertise for individual taxpayers under enquiry as well as firms with the current advisers or accountants supporting them in managing the HMRC disputes to get the best result. Connect with us today!
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