COP 9 Investigations

15 July 2016

Code of practice 9 investigations (COP9) are opened when HMRC suspects serious tax fraud has taken place and expect to reclaim taxes in excess of £75,000.

Although COP 9 investigations are a civil investigation, failure to comply can result in criminal investigation and prosecution with the ultimate punishment of imprisonment available to authorities.

However immunity from prosecution is granted in exchange of full and complete disclosure of all irregularities in the individual’s tax affairs via a procedure called Contractual Disclosure Facility (CDF).

HMRC agrees not to proceed with criminal investigation or prosecution against the individual over the fraud that they disclose in the CDF contract in return the individual must do the following:

  • Respond within 60 days, as failure to respond can be deemed as declining the offer to disclose and you will no longer be immune from prosecution.
  • Tell HMRC all the tax evasions and irregularities and sign a statement to say you have provided complete and accurate information and stop all evasions immediately.
  • Pay all the taxes, penalties and interest charges.

It is always advisable to cooperate with HMRC to avoid criminal prosecution, the individual would need to:

  • Complete a Disclosure Report to explain all tax irregularities including and careless or innocent errors.
  • The individual and their advisers must ensure that nothing is missed out and they can show HMRC how they have quantified the irregularities.
  • Summaries tax/duties, penalties and interest due to HMRC.
  • List of all bank accounts and credit cards provided to HMRC.
  • A statement of all of the individual’s worldwide assets and liabilities   .

It is important and encouraged for the individual to appoint a professional adviser to guide them through the process and negotiate with HMRC on their behalf.

Here at TT intelligence we could help you:

  • Prepare the disclosure report.
  • Attend meetings with HMRC on the individuals behalf
  • Negotiate a fair and final statement and try to mitigate penalties where possible.
  • Negotiate a reasonable payment period with HMRC.

We understand that it’s always a worrying time if you have received a COP 9 investigation letter, even if you feel you haven’t done anything wrong, however please contact us or get in touch today by calling 0203 039 3993 as soon as possible to give you the best chance for defence.

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