When HMRC suspect that tax fraud has occurred, they will investigate under Code of Practice 9. If accepted into this process, the taxpayer must admit that they deliberately evaded tax and then they will be interviewed by HMRC officers from HMRC’s Fraud Investigation Service.
These specialist investigators will offer the taxpayer a chance to correct all tax matters, not just the deliberate ones, by the submission of a disclosure report called the Contractual Disclosure Facility. The report should be prepared by a specialist in tax investigations and will be formally adopted by the taxpayer when it is submitted. Our firm has links with tax specialists and are in a good position to discuss matters with HMRC.
In effect, the tax adviser will conduct the review and report all irregularities to HMRC in the report and calculate the tax, interest and penalties to offer HMRC in settlement. In all the Code of Practice 9 investigations we have conducted HMRC have accepted our reports and have afforded all of our clients significantly favourable outcomes.
If HMRC accept this alterative then that is outlined in the tax adviser’s report and then the taxpayer is guaranteed not to be prosecuted with the potential of avoiding financial penalties, proceeds of crime proceedings as well as any potential custodial sentences, depending on the value being investigated.
If you decide to approach HMRC before they investigate you, it needs to be done in an effective way by a specialist who will manage your relationship with HMRC until closure.
If your tax irregularity does not qualify for a current HMRC campaign or does not warrant seeking admission to Code of Practice 9, the best way to make the disclosure to HMRC is through the Digital Disclosure Service.
You will usually have 90 days to submit the full disclosure from when you notify HMRC that you intend to make a disclosure.
For more information or to make an appointment please contact criminal defence and fraud director and solicitor Rubin Italia on 0203 114 1129 or email firstname.lastname@example.org.