A Fresh Approach to Tax Investigations
Tax Investigations - Serious Fraud

In this article Admiral Tax explore the very thorny and often misinterpreted subject of HMRC serious tax fraud investigations.

For many this is an Armageddon scenario, which without question it can be if not handled correctly and preferably by a tax investigation specialist who has specific experience of dealing with serious tax fraud investigations under HMRC's Code of Practice 9.

Admiral Tax Investigations cover some of the most frequently asked questions regarding serious fraud tax investigations below:-

  1. Which HMRC departments deal with cases of serious tax fraud or evasion?

    Your contact is likely to come from one of two specialist HMRC offices - Specialist Investigations or Civil Investigation of Fraud.

    Specialist Investigations tend to deal with larger, more serious cases of tax fraud or evasion. However, an approach from a Civil Investigation of Fraud office should be awarded the same respect and consideration.

  2. How will HMRC contact me?

    You and your adviser will likely be contacted in writing, notifying you that an investigation under HMRCs Code of Practice 9 (COP9) has commenced. The letter will include a copy of COP9, which you should read carefully.

    Generally the letter will specify the names of the individuals or businesses under investigation. However, occasionally the letter will include a "catch all statement" such as "all other personal or business interests"

  3. What should I do next?

    Do not panic!! Be decisive and proactive. You may well say - well he would say that wouldn't he?!?!

    But actually, a calm and focused head is vital when tackling such a daunting procedure.

    Daunting yes, impossible no!! With the appropriate professional advice and a positive, front foot approach you will soon be free of worry and ready to get on with the rest of your life.

  4. Should I appoint a specialist adviser?

    Absolutely!! you should consider using the services of a tax investigation specialist. By their nature the provisions of COP9 call for very specialised intervention.

    Remember this process is far removed from a conventional HMRC compliance check. Invariably the matter will be categorised by HMRC as being extremely serious and as such the case will be handled by a senior technical investigator. As a consequence the work associated with serious fraud tax investigations will be very complex in nature.

    Furthermore, there is also the very real threat of a criminal prosecution if the procedure is not given the appropriate respect. You will need to trust your appointed adviser and be open and honest regarding all aspects of your tax affairs in order to achieve the best possible outcome.

    This is certainly no time for half measures!!!!

  5. Will HMRC prosecute me for tax fraud or tax evasion?

    Code of Practice 9 is a civil procedure designed to give the taxpayer under investigation the opportunity to make a full and frank disclosure of all irregularities in his or her tax affairs. It will generally cover a specified period - of up to 20 years where appropriate.

    Problems generally only occur where the taxpayer decides for whatever reason to with hold information that subsequently gives rise to a material tax loss. In other words makes a partial or contaminated disclosure.

    You must not contemplate such a course of action, because if this partial disclosure subsequently comes to HMRC attention, then you will very likely be prosecuted.

  6. Will I have to attend a meeting?

    Yes-as part of this process you will be invited to attend a meeting with an HMRC investigator authorised to issue you with civil procedures under Code of Practice 9.

    You should not attend this meeting alone as it can be a fairly intense and demanding affair. Furthermore it will afford you with your only opportunity to explain your current tax position.

    Preparation is everything and a tax investigation specialist will be able to help you with this.

  7. What records will I need?

    That rather depends of the scale of the tax evasion involved. Your adviser may be able to agree the scope of the report that HMRC require. Indeed the notice itself may specify the tax areas under examination. However, you should assume that your disclosure will need to cover some if not all of the following:-

    • Personal income tax
    • Capital gains tax
    • Corporation tax
    • PAYE tax
    • Any tax due on investments
    • Inheritance tax
    • VAT
    • Customs and Excise duties
    • National Insurance Contributions

    It is vital that you gather together as much documentation and paperwork as you can, given that this will form the basis of your disclosure.

  8. Finally, remember it is your disclosure!!

    It is vital to remember that this is your disclosure. Even if you appoint an adviser, the responsibility for declaring all your income and making your tax affairs transparent lies with you.

    You must never assume that your tax adviser will be responsible for any omissions or errors that subsequently give rise to a partial disclosure.

    It is up to you to ensure that they have all the information they need in order to help you get the best result from the disclosure process.

    Finally, remember it is your disclosure!!

    It is vital to remember that this is your disclosure. Even if you appoint an adviser, the responsibility for declaring all your income and making your tax affairs transparent lies with you.

    You must never assume that your tax adviser will be responsible for any omissions or errors that subsequently give rise to a partial disclosure.

    It is up to you to ensure that they have all the information they need in order to help you get the best result from the disclosure process.

    With decades of tax investigation experience between our various specialists, Admiral Tax Investigations have the knowledge, ability and tactical awareness to successfully handle a tax investigation at any level-particularly those involving suspected serious tax fraud or evasion.

    Our team is made up of former senior HMRC investigators and inspectors. That internal departmental experience is absolutely invaluable and when allied to a proven track record of success within private practice, we are able to offer our clients a totally comprehensive service - regardless of the gravity or seriousness of the tax investigation concerned.

    We believe in giving value for money and a client service that is second to none. Our fees are extremely competitive and most importantly our fee structure is absolutely open and transparent.

    For a no commitment, confidential discussion about how we can resolve your tax investigation and save you money contact Admiral Tax Investigations day or night using the information listed below

    An initial consultation will be undertaken without charge and give our consultant the opportunity to offer you the no nonsense, practical advice that you need. Allow Admiral Tax Investigations to take control and be guaranteed absolute peace of mind.