Civil Investigation of Fraud: Code of Practice 9 (2009)
Where tax irregularities are substantial and where serious fraud is suspected HMRC may decide to invoke the Civil Investigation of Fraud (CIF) procedure under Code of Practice 9 (COP 9). This can often be to the taxpayer’s advantage as a decision to offer COP 9 means that if the tax disclosure is correct and complete there will not be a criminal prosecution. It is absolutely essential that the disclosure is indeed correct and complete.
HMRC’s CIF teams may be based in Specialist Investigations (SI) or in a local office. But wherever they are based they are composed of specially selected and trained Inspectors with great experience of investigations, interviews and negotiation. They are likely to use HMRC’s information powers to the full.
If HMRC mount an investigation under CIF then they will expect a comprehensive Disclosure Report within a tight time-scale- usually 6 months. These Reports demand experience of the process and sufficient specialist time and expertise to ensure deadlines and HMRC expectations are met. If Reports are late HMRC might seek a larger penalty.
It is essential that any tax irregularities stop immediately.
Of course someone investigated under COP9 may be innocent of any tax fraud and in that case it is essential they are represented by specialists in this field to ensure their case is presented clearly and fully to HMRC.
We have the experience, resources and skills to represent you in what is a difficult and demanding time.
Our approach is non judgmental and geared to achieving the best result for you as quickly as possible. While we aspire to a productive relationship with Inspectors of Taxes we will present your case vigorously and robustly. At all times you will be kept informed of developments and options for settlement will always be clearly explained to you.
We will:
- advise on whether to attend meetings with HMRC
- quantify any disclosure
- compile any Disclosure Report
- advise on how many years HMRC can assess
- negotiate all adjustments to profit with HMRC
- negotiate the amount of any penalty
- conclude the enquiry
For further details on Code of Practice 9 (2009), please see www.hmrc.gov.uk/leaflets/cop9-2009.htm or contact Iain Macleod on 0115 983 5580 or mobile 07920 146800 or email Iain at imacleod@edftax.co.uk
