Further to the recent report by Timothy Thompson of Kangs Solicitors on tax investigations conducted by HMRC.
He now considers HMRC’s route to combat tax fraud through ‘Contractual Disclosure Facilities’, known as Code of Practice 9 ‘ (COP9).
What is a COP9 | Kangs Fraud Advisory Team
In cases where a criminal investigation has not been commenced but HMRC suspects tax fraud/tax evasion, it may opt to invoke a COP9 investigation.
The investigation is commenced by the issue of a COP9 which provides the recipient with the opportunity to disclose any conduct, deliberate or otherwise, concealing the true liability to HMRC of tax due.
HMRC may commence a criminal investigation if it is felt that full and frank disclosure has not been made or that false and/or misleading statements have been made.
Having considered the contents of a COP9, if HMRC concludes that a full disclosure has been made, it will not pursue a criminal investigation.
What Options Are Available? | Kangs Solicitors Tax Team
You have the option to reject the COP9 offer, but by doing so you may face a criminal investigation into your tax affairs conducted by HMRC.
If you accept the offer, you will be required to make a full disclosure as requested as, if there is failure to fully co-operate, HMRC remains entitled to initiate a criminal investigation.
How Should I Proceed? | Kangs Solicitors Tax Fraud Team
It is crucial that you obtain advice from the outset as to whether to accept or reject a COP9 offer as the consequences of your decision can be far reaching.
The documentation involved is detailed and demanding and requires the attention of those experienced in handling the numerous searching questions that arise.
If you require any guidance then please do not hesitate to contact our team through any of the following: