UK
Ireland
Serious tax investigations
HMRC’s Fraud Investigation Service (FIS) undertakes both criminal and civil serious investigations. There are three main types of serious tax investigations.
HMRC Code of Practice 8 (COP 8) investigations and suspected tax avoidance
HMRC normally uses the COP 8 process for civil procedures when tax fraud is not necessarily suspected but the arrangements investigated are complex, high-value and may include some element of suspected tax avoidance.
Arrangements involving the use of structures or entities outside of the UK are commonly investigated under COP 8.
HMRC Code of Practice 9 (COP9) investigations and tax fraud
HMRC investigates cases of suspected serious tax fraud under the COP 9 process. Common questions for COP 9 investigations include the following:
Frequently asked questions about serious tax investigations
How long do I have to respond to an HMRC COP 9 notice?
You must respond within 60 days, or HMRC will treat you as having denied tax fraud.
What is the disclosure report under COP 9?
The disclosure report sets out the details of your tax irregularities and how and when they arose. HMRC does not prescribe the format of the report, but as an adviser, we will agree on the report’s scope with HMRC, usually after the first meeting.
Am I required to meet with HMRC as part of the COP 9 process?
You don’t have to, but HMRC will usually ask to meet you at the beginning and possibly again at the end of the process and view attendance as a sign of goodwill. We normally host these meetings for our clients at one of our offices nationwide or remotely.
How much are the penalties following COP 9?
Several factors will determine any penalties payable. Higher penalties will apply in cases of deliberate or fraudulent conduct and where steps have been taken to conceal the tax fraud.
When do I have to pay the tax owed?
As part of the COP 9 process, HMRC may request payments on account while your disclosure report is prepared. Any payments made will reduce the interest on late paid tax in the final settlement.
If you cannot pay the amounts owed, we can negotiate the time to pay as part of any settlement with HMRC.
Criminal tax investigations
If you receive a letter from HMRC stating that you are being investigated with a view to prosecution or you are arrested, you will require legal representation. Our team works with leading law firms specialising in this area, and we can arrange immediate legal representation.
If you are facing a criminal tax investigation, you or your legal adviser should get in touch immediately.
For more information, call our team.
