HMRC criminal tax investigation services
Tax • Tax Disputes and Investigations
Being under criminal tax investigation might leave you feeling like you’re at breaking point, however, not all investigations have to end in criminal prosecution. Find out the ins-and-outs of criminal tax investigations and how enlisting a specialist adviser can assist your case.
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HMRC is responsible for investigating suspected criminal activity across the breadth of direct and indirect taxes throughout the UK, and HMRC’s criminal investigation policy states that it has complete discretion to conduct a criminal tax investigation in any case.
Historically, HMRC’s policy has been to deal with suspected tax fraud/evasion via its Code of Practice 9 (COP9)/Contractual Disclosure Facility procedure, and this continues to be its preferred option. The number of criminal investigations being opened by HMRC is increasing, however, HMRC has faced criticism for the types of cases it is pursuing, with the focus now seeming to be on lower complexity, and lower value cases, potentially to increase its success rate.
HMRC’s policy documents confirm it will pursue a criminal investigation in certain circumstances, such as where it feels it is necessary to send a strong deterrent message. This usually occurs in the following instances:
Where there has been a breach of trust, such as by accountants, solicitors or other professionals;
Where there has been deliberate concealment, deception, conspiracy or corruption;
Where documents have been forged or intentionally destroyed; or
For repeat offenders.
Where a taxpayer under a COP9 investigation accepts the Contractual Disclosure Facility offer but makes materially, and intentionally, false or incomplete disclosures, HMRC will often feel it has no option but to criminally investigate.
In addition, HMRC also reserves the right to reconsider the case as a criminal investigation where a taxpayer under a COP9 investigation rejects HMRC’s offer of the Contractual Disclosure Facility. This highlights the importance of utilising specialist advice in the event of a COP9 investigation.
Typically, HMRC will notify a taxpayer they are under criminal investigation by either inviting them to attend a Police Station for interview, or through the execution of a search and arrest operation (also known as a raid).
What should you do?
If you find yourself subject to an HMRC criminal tax investigation, you need specialist representation, and we would advise seeking the advice of a qualified lawyer and a criminal tax investigations specialist as soon as possible.
We work with some of the UK’s leading criminal defence lawyers to provide a multi disciplined team that can deliver a discreet and comprehensive service tailored to meet your unique needs and protect your interests.
Not every criminal tax investigation results in a successful criminal prosecution. It is ultimately up to the Crown Prosecution Service to determine whether the prosecution should go ahead, and if they choose not to proceed the case will then continue on a civil basis.
We have had great success in changing HMRC’s (and the CPS’) focus of the investigation from a criminal investigation to a civil one, thus protecting our client’s liberty, reputation and assets. This is generally done by either demonstrating there was no intention to submit an inaccurate return or to benefit from failing to submit a return, that there is insufficient evidence to provide a reasonable prospect of conviction and/or it is not in the public interest to pursue a prosecution.
Should HMRC insist on proceeding criminally, we have a proven track record of defending clients and dissuading HMRC or the CPS from proceeding with a criminal prosecution. We work closely with some of the UK’s leading criminal defence lawyers to provide you with a multi-disciplined team and the most comprehensive advice and representation.
Our service includes a thorough review of any tax fraud allegation, and any claims/computations put forward by HMRC to enable us to suggest alternative interpretations where appropriate. We will always present you with all available options and a clear explanation of the potential consequences of each.
Our team
The team is led by Mark Taylor, Partner, and Barbara Bento, Head of Tax Investigations and Dispute Resolution, who are recognised experts in all areas of tax investigations and disputes. Mark in particular has served in all of HMRC’s elite investigation offices, including HMRC’s Criminal Investigations & Restraint & Confiscation teams.