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CODE OF PRACTICE 9 TAX INVESTIGATION

CODE OF PRACTICE 9 TAX INVESTIGATION

HMRC Fraud Investigation Service use the Contractual Disclosure Facility to issue a Code Of Practice 9 Investigation.  It is a leaflet that outlines the position of HMRC, what is required when completing the forms for Contractual Disclosure, the actual forms and what is involved in the investigation process.  A Code Of Practice 9 investigation is only issued if there is suspicion of serious tax avoidance.

UNDERSTANDING COP9 TAX INVESTIGATIONS

Essentially, the Code Of Practice 9 establishes the procedures and protocols HMRC are expecting to operate under when there is suspicion of serious tax fraud.  This highlights:

  • That it is an individual or organisation’s only chance to fully, comprehensively disclose irregularities in their tax returns.
  • That to continue with the investigation process, the individual or company must admit that they deliberately avoided declaring their full income, or deliberately claimed VAT, expenses or reliefs they knew were not applicable and were incorrect.
  • That any accidental errors that should be included the appropriate disclosure.
  • That HMRC uses the term deliberate to suggest the individual or company knew they had included inaccurate accounts or tax returns and submitted them.
  • That prosecution is an option if false statements are made as part of the investigation process.
  • That if a full disclosure has been submitted, prosecution of the individual or organisation will not be considered.
  • That there are just 60 days from the date the offer was issued for the individual or company to accept participation in the Contractual Disclosure Facility.
  • That HMRC will assume that the individual or company are stating they have not deliberately submitted incorrect information if the forms required have not been received by HMRC within the time-frame.

COP9 Tax Investigation Support

How HMRC handle income tax investigation when a COP9 has been issued is a crucial factor. If it is handled badly it could result in the individual or company receiving increased penalties, as well as the company or individual’s name being published on HMRC’s website for tax fraud. This is why it is crucial that as soon as you receive a letter outlining HMRC’s intentions, that you contact an experienced and qualified team like Accountancy Solutions to guide you through the process.

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