Code of Practice 9: Civil Investigation of Fraud
A COP 9 is generally considered to be among the most serious and worrying of all tax investigations.
HMRC usually adopt this formal procedure to investigate cases of tax fraud where they have reason to suspect serious tax evasion, likely to generate a total yield of under declared tax, interest and penalties of £75,000 minimum.
These investigations are carried out by one of two main specialist divisions within HMRC, the 'Civil Investigation of Fraud' (CIF) unit, or the 'Specialist Investigations' (SI) team. Both divisions are staffed by experienced and highly trained tax fraud Inspectors and the seriousness of enquiries undertaken by both divisions simply cannot be overstated.
What is a Code of Practice 9 Investigation?
COP 9 investigations cover all the main taxes: Corporation Tax, Income Tax, Capital Gains Tax, CIS Tax, PAVE and VAT.
Once notification of an investigation under COP 9 has been issued, the taxpayer is usually protected against the threat of criminal prosecution for the alleged tax fraud. However, it should be noted that HMRC reserve the right to instigate criminal proceedings where materially false statements are made during the course of the investigation.
The taxpayer is encouraged to attend an initial interview with HMRC officials, at which point formal questioning will be undertaken. At this meeting the taxpayer will be given the opportunity to make a full and complete disclosure of all known irregularities in their tax affairs over the last twenty years.
HMRC will then invite the taxpayer to produce a 'Disclosure Report', which will include a brief business history, the nature and extent of the tax irregularities identified (where applicable), and how they arose.
Usually HMRC has an expectation of receiving the Disclosure Report within six months following the date of the opening meeting.
How we at turpin barker armstrong can help
As highlighted above, COP 9 offers the chance to avoid prosecution and it is essential that help and advice be taken at the earliest opportunity.
HMRC's COP 9 recommends the appointment of a professional advisor to deal with investigation-related matters. HMRC expects high standards from your chosen professional advisor.
It is highly recommended that a professional advisor is present at each meeting with HMRC to provide guidance and support in ensuring the taxpayer is treated fairly, and their best interests are protected.
Working closely with the taxpayer, turpin barker armstrong offer a comprehensive service to ensure the Disclosure Report produced is of the highest quality, as demanded by HMRC. A good report is considered critical in assisting the taxpayer to mitigate the tax, interest and penalties assessable.
A badly prepared report may potentially increase a taxpayer's eventual liability, and also the risk of criminal prosecution!
We understand from experience how distressing an investigation of this nature can be. Through our expertise and experience we are ideally placed to work alongside the individual, liaising with HMRC on their behalf, and helping to bring the investigation to a prompt conclusion.
Contact Us
We offer a truly personal service at a time when it is most needed and our fee structures are extremely competitive.
If you would like to discuss how we might be able to assist please contact us now to arrange an initial consultation, completely free of charge and without obligation.
Dean Clark FCCA
Partner
020 8661 7878
07958 457 753
dean.clark@turpinba.co.uk
David Whiteman
Senior Manager
020 8661 7878
07841 422824
david.whiteman@turpinba.co.uk
