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HMRC’s Fraud Investigation Service (FIS) conduct serious civil tax investigations under Code of Practice 8 (COP8) or Code of Practice 9 (COP9). HMRC’s FIS is HMRC’s elite investigation office. Its officers should be respected and not under-estimated.
HMRC COP8 tax investigations are only opened in circumstances where HMRC holds suspicion that the taxpayer has underpaid a significant amount of tax through complex tax arrangements or structures, particularly involving offshore aspects. HMRC’s FIS aims to successfully challenge your tax affairs and to recover tax, interest and penalties.
If you are placed under a COP8 tax investigation, you should immediately seek specialist advice to help and guide you around the potential pitfalls to ensure you are best protected and reduce the liability that might otherwise be due.
Should HMRC FIS establish evidence of tax fraud or irregularities resulting from deliberate or concealed behaviour, they may change the investigation to COP9 status or even commence a criminal investigation.
A COP9 investigation is undoubtedly the most serious type of civil investigation undertaken by HMRC’s FIS. A COP9 investigation is only opened in circumstances where HMRC’s FIS suspects an understatement of tax and believes the underlying reason for that irregularity is a taxpayer’s dishonesty and intention to commit fraud.
Taxpayers are given 60 days to accept or reject HMRC’s Contractual Disclosure Facility (CDF) offer. The CDF offer gives taxpayers the chance to disclose any loss of tax to HMRC that has been brought about by deliberate conduct.
Specialist advice about the potential consequences of accepting or rejecting the CDF offer is imperative. Further information on HMRC COP9 and the CDF offer can be found on our FAQ webpage.
If you or your client is placed under COP8 or COP9 tax investigation, HMRC’s published view is as follows: “You are strongly recommended to seek specialist independent professional advice… many people find it helpful to appoint a specialist adviser who is familiar with this Code of Practice, in addition to their regular advisor.”
Specialist advisers can guide you around potential pitfalls to ensure you are best protected. They will also allow you to get ahead of any accusations by HMRC and should reduce the overall cost of any investigation.
When considering appointing specialist representation for either COP8 or COP9 investigations, clients and advisers should ask themselves these questions:
Should you choose to get specialist advice from Buzzacott, we will:
Buzzacott’s Tax Investigations and Dispute Resolution team has been honoured as the ‘Best Tax Disputes/Investigations Team’ at the prestigious Tolley’s Taxation Awards 2019. These awards recognise the finest achievements and talents of remarkable individuals and teams across the entire tax profession. The team is led by Mark Taylor, who is a recognised expert on all areas of tax investigations and disputes.
We can guide you through the process and act as your representative and agent, ensuring you have minimum contact with HMRC and safeguarding your best interests.
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