HMRC’s latest proposed compliance initiative should be warmly applauded in my view.
The publication of a discussion document setting out the terms of a new amnesty provisionally entitled the Contractual Disclosure Facility (CDF) makes interesting reading.
When enacted, the CDF will join the wave of amnesty schemes under which taxpayers who have evaded tax can come forward to negotiate settlements without the fear of criminal prosecution.
Third party information
As mentioned in previous tax track articles HMRC access to, and interrogation of third party information has improved significantly in recent years.
Sophisticated data-matching technology now makes it easier for the department to identify cases of suspected fraud at a much earlier stage.
Consequently the risk of HMRC discovering irregularities in a taxpayers affairs and launching an investigation has risen markedly. It follows then that a more streamlined legal process is required to tackle cases of deliberate non compliance quickly and effectively.
Guarantee of no prosecution
Under the CDF initiative HMRC would write to the taxpayer informing them that they were suspected of tax fraud. They would then be offered an opportunity to enter into a contract to disclose that fraud in exchange for a guarantee that HMRC would not pursue a criminal prosecution.
A 60-day period hs been muted to allow the taxpayer to prepare an outline disclosure of all known irregularities, covering what happened, the amounts involved and any entities or associated parties involved. It would also require them to make an admission of fraud.
CDF would also offer taxpayers the opportunity to make a spontaneous disclosure.
Code of Practice 9
HMRC updated its Code of Practice 9 (COP9) for criminal investigation of fraud processes on the 18th July. This revisions set out changes in the documents layout and highlight situations where HMRC asks the taxpayer to prepare a disclosure report.
The closing date for the CDF consultation period is 20 September 2011.
Why you should choose a specialist
Admiral Tax Investigations have decades of tax investigation experience, ensuring that you receive the very best tax investigation advice possible.
Admiral Tax Investigations have particular expertise in dealing with disclosures, whether they be voluntary, prompted or under one of HMRC’s various tax amnesties.
If you have doubts, concerns or worries regarding your tax affairs, then without question now is the time to come forward and disclose.
With a tax investigation specialist in your corner, a disclosure will see you begin sleeping again at night. Instead of dreading that potential contact from one of HMRC specialist compliance teams why not be positive and proactive. Act now!!
It could save you thousands of pounds and the potential for criminal proceedings being launched.
Contact Admiral Tax Investigations today on 0845 519 2206 or email the office direct using either our contact form or if you prefer at info@admiraltax.co.uk
