HMRC Investigations: Code Of Practice 9

• Published date: 30 October 2020
• Subject Matter: Tax, Criminal Law, Tax Authorities, White Collar Crime, Anti-Corruption & Fraud
• Law Firm: Withers LLP
• Author: Withers LLP

Not all tax fraud results in a criminal investigation and prosecution. HMRC have discretion to offer taxpayers whom they suspect have been involved in deliberate fraud an opportunity to make a full disclosure in return for a promise that the matter will be conducted under this code of practice (known as COP9). A few thousand specially trained officers within the FIS Directorate work the individual cases. 'FIS' (pronounced 'FIZ')has nothing to do with champagne but stands for Fraud Investigation Service.

Most COP9 cases are started by HMRC but a taxpayer who wishes to make a voluntary disclosure is usually received with a welcome. The procedure is the same and the financial penalties are usually lower. The modern practice is for HMRC to offer a contract to the taxpayer to participate in its Contractual Disclosure Facility (CDF) whereby in return for a full disclosure of all deliberate tax fraud, continuing cooperation throughout the enquiry and payment of tax interest and penalties, the enquiry will result in a civil settlement I.e. monetary payment. The taxpayer does not undergo court proceedings and no criminal record can result.

How we can help

Withers' tax investigation team has had extensive experience in COP9 investigations over many years and has advised clients in relation to those...