Are you going through a tax investigation or enquiry under HMRC Code of Practice 9 or Contractual Disclosure Facility?
If HMRC have written to you and stated you are being investigated under Contractual Disclosure Facility or Code of Practice 9 or COP 9, then must understand and accept that this is a very serious matter and can possibly lead to imprisonment. It is extremely important that you contact an experienced tax investigation specialist as soon as possible to advise and represent you.
CDF or Code of Practice 9 tax investigations can have a very distressful affect on your work and social life and you can end up losing a substantial amount of money in tax and penalties as well as risk of being prosecuted and imprisoned.
You can speak confidentially to our team of COP 9 investigation and enquiry specialists on 0203 5000 853 to go through the merits of your case.
What is HMRC COP 9 tax investigation / enquiry under Contractual Disclosure Facility?
HMRC use Code of Practice 9 under CDF where they have reason to suspect serious tax fraud through deliberate behaviour and there is a substantial amount of underpaid tax. HMRC carry out considerable research and use intelligence before opening starting a COP 9 investigation through a CDF.
Under the CDF, the suspected tax fraudster is given the opportunity to come forward and make a full disclosure of the underpaid tax and any deliberate and non-deliberate irregularities.
The process for Code of Practice 9 tax enquiry or investigation works by HMRC offering the tax payer to accept that there is underpaid tax through deliberate behaviour and to make an “outline disclosure” to HMRC. HMRC will then review the outline disclosure and compare against their records to check if it is reasonable and acceptable. If so, HMRC will then advise the tax payer that they have accepted the outline disclosure. A meeting will then be held between HMRC, the tax payer and their agents to go through a large questionnaire, discuss the outline disclosure, scope the work to be carried out and information to be provided and set a timeline for the full disclosure report. This can be a lengthy process and can take between 6 to 18 months or even more depending on the complexity of the case and how far back the tax investigation goes.
If HMRC at any stage suspect that the tax payer has not made a full disclosure under the CDF and there is still some undisclosed income, HMRC may instigate criminal tax investigation proceedings which can lead to prosecution and possible imprisonment.
If the tax payer has made a full disclosure of all underpaid tax either deliberate of non-deliberate, through the CDF, HMRC will not start a criminal tax investigation and the taxpayer will be immune from prosecution. It is therefore in the best interest of the tax payer to make a full and accurate disclosure to HMRC.
Code of Practice 9 tax investigation or enquiry under CDF allows HMRC to go back as far as twenty years.
Why has HMRC contacted me under Code of Practice 9 or Contractual Disclosure Facility?
If you have received a letter from HMRC that they are opening a tax investigation or enquiry under Code of Practice 9 through a Contractual Disclosure Facility, this means they have carried out considerable research and fact finding about your tax affairs before contacting you. There is also a possibility that a third party has provided intelligence to HMRC about your tax irregularities and undeclared income.
Should I contact HMRC myself in relation to the COP 9 tax enquiry?
COP 9 tax investigations under CDF are a specialist area and require detailed knowledge of tax law and years of experience in dealing with complex tax enquiries. It is strongly advisable to appoint a well known firm of tax enquiry specialists with years of experience in handling Code of Practice 9 enquiries. If you or your ordinary accountant do not have the knowledge and experience in handling such enquiries, it can end up making matters worse and cost more in tax and professional costs. There is also a possibility that the CDF could be rejected by HMRC and the case could be lead to criminal tax investigation, prosecution with possible imprisonment.
An experienced tax investigation specialist will advise you on your rights, your risks and possible strategies to mitigate your potential tax liability. They will liaise with HMRC in a professional manner and agree the least amount of tax and penalties payable by you without the risk of the case becoming a criminal tax fraud prosecution. An experienced tax investigation adviser or specialist will help bring matters to an amicable conclusion in as little time as possible.
You can contact us 0203 5000 853 to speak to a tax investigation specialist for a confidential consultation.
What is the worst case scenario during a HMRC Code of Practice 9 tax investigation?
The main purpose of a Code of Practice 9 tax investigation under a CDF is to allow the tax payer an opportunity to make a full disclosure of their tax irregularities. A full disclosure will offer immunity from prosecution. If HMRC suspect that a full disclosure has not been made, they can instigate a criminal tax investigation leading to prosecution for serious tax fraud and imprisonment. This will inadvertently lead to significantly higher professional costs, tax and penalties as well as imprisonment.
It is therefore strongly advisable to make an honest and accurate disclosure through a highly experienced and qualified tax investigation specialist.
Can Churchill Tax Investigations help me with the Code of Practice 9 enquiry?
Churchill Tax Investigations is a reputed firm and well known as one of the UK’s leading Code of Practice 9 Specialists. Our leading team of tax investigation specialists includes highly qualified tax law experts and ex-HMRC investigators with a combined experience of over 60 years in dealing with complex tax investigations. Our tax enquiry specialists will help you by:
- Carefully reviewing your case and give you detailed advice on the strengths and weaknesses of the case
- Put together a plan of action in bringing the case to a conclusion with minimum amount of tax and penalties payable
- Effectively and professionally communicate with HMRC in relation to your case
- Professionally represent you during the initial meeting with HMRC. Advise you on your rights prior to the meeting
- Agree a time plan and strategy with HMRC during the initial meeting for the information and analysis to be provided
- Liaise with you and your existing accountant in relation to the information required
- Professionally negotiate the lowest possible taxes and penalties with HMRC officers
- Assist you in setting up a payment plan to be able to settle the overall liability
Call us now on 0203 5000 853 to speak to one of our tax investigation specialists in relation to your case.