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News – 10.04.24
Form PF: Are you up to speed with the latest developments?
Through this insight we will bring to your attention the main changes in a bitesize manner so that you can stay abreast of the requirements as they may apply to your firm. … Read more
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Tax relief on heritage assets: Am I eligible?
For assets considered to be of national heritage, relief from Capital Gains Tax and Inheritance Tax is available. … Read more
Upcoming event – 06.06.24
Demystifying charity investments with Buzzacott and Rathbones
Join experts from Buzzacott and Rathbones for key insights on investment governance and strategic decision-making. … Read more
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130 Wood Street, London, EC2V 6DL
enquiries@buzzacott.co.uk T +44 (0)20 7556 1200
Get help with HMRC COP9 and CDF today: +44 (0)20 7710 3389
COP9 investigations are the most serious type of civil investigation undertaken by HMRC and are conducted by its elite Fraud Investigation Service (FIS). All HMRC FIS officers are specialist fraud-trained investigators and should not be under-estimated.
COP9 investigations are only opened where HMRC suspects a loss of any tax or duty through the deliberate, fraudulent activity of a taxpayer. For this reason, the initial letter from HMRC opens with “HMRC have information that gives us reason to suspect that you have committed tax fraud.”
When HMRC FIS issues a COP9 investigation, it provides you with a one-time offer, known as the Contractual Disclosure Facility (CDF), whereby you will receive immunity from criminal investigation and/or prosecution in return for:
By accepting HMRC’s CDF offer, you are also agreeing to pay a minimum penalty of 35% of the unpaid tax (A higher percentage applies if the liability involves offshore activities), in addition to the interest that has accrued over those 20 years.
From the date of receipt of HMRC’s COP9 CDF offer, you have 60 days to accept or reject. This decision is vital to the outcome of the case and the financial impact on you.
Accepting the CDF offer is not mandatory. If you have not acted deliberately with any tax irregularities, the CDF offer should be rejected. Any rejection, however, needs to be skillfully handled given HMRC FIS suspects you have committed tax fraud.
Doing nothing is not an option as HMRC FIS will deem you to have rejected its CDF offer and will commence its investigation. You will be deemed uncooperative, the level of your penalties will be greatly increased and, perhaps more importantly, you will have lost all control.
Non-specialist tax advisers will often panic upon seeing the COP9 letter and may advise you to accept the CDF offer without significant consideration. By contrast, any adviser with specialist expertise will carefully review your circumstances and ensure you do not let the threat of prosecution force you to admit tax fraud if you simply made an honest mistake.
The distinction between making a mistake and taking deliberate action is not always straight forward. A specialist adviser will be able to establish how your behaviour should be viewed in light of the COP9 investigation and will be properly equipped to make representations to HMRC FIS if required.
The potential consequences of a rejection must be taken seriously, but so must the financial implications of accepting you have committed tax fraud. Seeking professional advice at the earliest opportunity to aid the decision of accepting or rejecting the CDF offer is, therefore, essential to ensure you make the right decision.
Buzzacott’s award-winning Tax Investigations team are COP9 experts. Our team includes former HMRC FIS investigators, and our team leader, Mark Taylor, acts as a consultant for HMRC’s COP9 policymakers. Consequently, we have a unique understanding of HMRC’s approach to COP9 investigations and the tactics HMRC FIS investigators employ.
We will draw on this extensive experience and our technical knowledge to give you the best possible advice on how to protect yourself while also minimising your exposure to any unnecessary tax, interest and penalties. Once appointed, we will:
For further information and detailed guidance on COP9 investigations, read our COP9 frequently asked questions here.
Mark is a recognised expert in all contentious tax matters, having served in all of HMRC’s elite investigation offices as a Senior Tax Inspector and accredited Financial Investigator.
Mark brings a unique understanding of HMRC to the advantage of Buzzacott’s clients, resulting in more efficient handling of HMRC enquiries and, for those who have any irregularities, minimising unnecessary tax, interest and penalties and, in the most serious cases, avoiding criminal investigation and the confiscation of assets.
Mark’s ability to resolve the most difficult of tax disputes for his clients has led to recognition. He features in the Spear's 2021 index as a top recommended tax adviser for individuals under HMRC tax investigation.
To speak to Mark or an expert within the team, please complete the form below or call +44 (0)20 7710 3389.
The team at Buzzacott filled me with confidence with their extensive knowledge and experience, which was of great comfort to me at a very challenging time. They helped me work towards a solution in a proactive manner and I felt their honest approach in dealing with the enquiry was excellent. I would happily recommend Mark and his team to any of my contacts.
Client
Call us today on +44 (0)20 7710 3389 or fill in the form below and a member of our team will be in touch. All communications are in the strictest confidence.
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