The UK's tax authority, HMRC, is increasing its use of the Code of Practice 9 (COP9) procedure to tackle tax fraud. This enables HMRC to investigate suspected cases of tax fraud where a criminal investigation is not initiated. Under the procedure, taxpayers have the chance to admit to tax fraud, pay what they owe, and avoid a criminal investigation. The taxpayer and HMRC will enter into a contract under the Contractual Disclosure Facility (CDF), with the taxpayer committing to making an honest and complete disclosure of their fraudulent activities. In return, HMRC promises not to initiate a criminal investigation. However, if fraudulent behavior is not fully disclosed, HMRC may launch a criminal investigation and consider prosecution.
HMRC has clarified the rules surrounding tax fraud reporting for individuals who have failed to pay the correct amount of tax. The updated policy sets out the key aspects of the COP9 procedure, including the importance of complying with the CDF contract's terms and the consequences of not doing so. HMRC has also added new sections, including when COP9 can cover fraud related to HMRC functions not involving tax. The updated policy specifies the actions HMRC can take if the COP9 recipient rescinds their admission of deliberate behavior after accepting the CDF offer.
To report tax fraud, individuals can email centre.cop9@hmrc.gov.uk or call the HMRC fraud hotline on 0800 788 887. HMRC warned that failure to comply with its rules and regulations could result in serious consequences, including prosecution. Therefore, anyone receiving a COP9 notification should seek legal advice to understand fully the implications of their actions. The refreshed Code of Practice 9 is part of HMRC's efforts to combat tax fraud and encourages individuals to come forward and disclose their fraudulent activities in return for avoiding prosecution.
If you have received any kind of HMRC tax investigation notification, it is essential to seek adequate advice to ensure that you comply with the rules and regulations and fully understand the implications of your actions. At Everest & Co Accountants, we have years of experience in assisting individuals facing HMRC tax investigations, including COP9 cases. Our team of experts can provide you with comprehensive advice and support to help you navigate the complexities of the procedure. Contact us today on 01902219680 to schedule a consultation and discuss your case in detail.
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By Mr Anuj Paudel on 23.06.2023