If Deliberate fraudulent conduct is admitted a Contractual Disclosure Facility agreement with HMRC is entered into. Under the CDF procedure the taxpayer is given the opportunity to make a complete disclosure to HMRC of all the tax frauds that have taken place, in return for immunity from prosecution. Choosing this option will result in a financial settlement being reached with HMRC.
Under the CDF procedure the taxpayer is required to provide HMRC with an outline disclosure setting out all of the areas where tax fraud has taken place at the outset. The taxpayer is given 60 days to prepare the outline disclosure from the date they were offered the opportunity to participate in the CDF procedure. Immunity from prosecution is only extended to the areas covered in the outline disclosure. If there are any material omissions from the outline disclosure, HMRC reserve the right to prosecute.
The next stage of this type of tax investigation could involve a formal meeting with HMRC. During the meeting HMRC will seek further detail in respect of the outline disclosure provided, as well as the taxpayer’s personal and business affairs. The taxpayer will generally be required to attend this meeting and Janes Solicitors will attend with you.
After this the taxpayer is expected to commission a report, to be prepared by their tax adviser, which sets out in detail the taxes underpaid and provides as much evidence as possible to demonstrate that the figures now disclosed are, as far as possible, correct.
Janes Solicitors will advise you on the best approach.
Speak to one of our team straight away if you have received a COP9 letter, for responsive and pragmatic legal advice. Any investigation procedure by the authorities can be highly stressful and debilitating to your business, and it is vital you seek legal advice early. Janes Solicitors will advise you so you know exactly where you stand, and how best to proceed at every stage.