Serious civil tax investigations services

Code of Practice 9 tax 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.

Seek specialist help and advice

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.”

Tax investigation specialists can guide you around potential pitfalls to ensure you're 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:

• Do you feel comfortable dealing with HMRC FIS?
• What happens if the COP8 investigation escalates to a COP9 fraud investigation or criminal investigation?
• What potential penalties are involved and do you know how best to minimise these?
• Are there any errors in your tax affairs that you should disclose and, if so, how did these occur?
• Are you sure which irregularities are deliberate and which are non-deliberate, and are you confident you can defend this position if pressed by HMRC?
• What is the best way of addressing your tax affairs to secure a better settlement or outcome with HMRC?
• Should you accept the CDF offer and what happens if you reject?
• Can you go to prison?
• Can you be publicised as a tax evader?

How can we help?

Should you choose to get specialist advice from Buzzacott, we will:

• Carry out a comprehensive review of your tax affairs, working with you and your professional adviser, to ensure we have a full understanding of the issues and risks you are facing;
• Prepare a strategy going forward to minimise your potential exposure to unnecessary tax, interest and penalties;
• Should a disclosure be necessary, we will present this to HMRC to ensure that you are treated fairly and proportionately; and
• Aim to fast track your investigation to resolution and closure of all issues to your satisfaction at minimum cost and disruption to you.