What is Civil Investigation of Fraud
Please note there has been a change in HMRCs approach to civil investigation of fraud. See our dedicated page Contractual Disclosure Facility for more information.
Below, we give you some useful background on one of the teams who conduct tax investigations where serious fraud is suspected. Otherwise known as the civil investigation of fraud team.
Who are the Civil Investigation of Fraud Team?
You may find it useful to read our essential guide to Code of Practice 9, by clicking on the link below. It is extremely detailed and covers every aspect of this rather complex HMRC procedure.
If HMRC begin an enquiry under civil investigation of fraud procedures you can be sure that they suspect serious tax evasion has taken place. It is absolutely key that you seek advice from a civil investigation of fraud specialist immediately.
Following the merger between Inland Revenue and Customs and Excise, tax investigations launched by the civil investigation of fraud office will often include a VAT element. This is referred to internally as cross tax. You will therefore usually find yourself under scrutiny from two investigators. One responsible for direct taxes, the other for indirect taxes.
You can learn more about VAT investigations by clicking on the link below.
What do you face under Civil Investigation of Fraud?
You should already have read our dedicated page on the Contractual Disclosure Facility.
Civil Investigation of Fraud teams deal with serious cases of suspected tax evasion within their specific remit. Generally this will be tax investigations where the perceived tax at risk, including interest and penalties is at least £75,000.
Larger cases where the perceived tax at risk is at least £500,000 are dealt with by an even more senior arm of the civil investigation of fraud group, known as HMRC Special Investigations.
Civil investigation of fraud teams are staffed by very experienced HMRC Inspectors. As a consequence your civil investigation of fraud enquiry will be the subject of greater forensic analysis than would be the case if it emanated from a conventional local compliance office.
You should immediately seek the service of an adviser who has a detailed knowledge of civil investigation of fraud work.
Voluntary disclosure report
A comprehensive full disclosure report covering up to 20 years will be required as part of the civil investigation of fraud process. This will need to include a completed statement of assets and a certificate of full disclosure. See links below for more information.
As with reports made to special investigations, your civil investigation of fraud disclosure will also need to be accompanied by a completed certificate of all bank, building society and credit cards operated. This will cover a specified period usually agreed between your adviser and HMRC. This period will be determined by the scope of the report.
Materially false or misleading statements can result in criminal proceedings.
Read our dedicated page of HMRC’s criminal prosecution policy below.
Civil Investigation Of Fraud Specialists
If you become the subject of a tax investigation by HMRC Civil Investigation of Fraud, contact Admiral Tax Investigations without delay.
A specialist civil investigation of fraud consultant is on hand to take your call 24 hours, 7 days. Admiral Tax Investigations have vast experience of civil investigation of fraud cases, ensuring that you receive the very best tax investigation advice possible.