Code of Practice 9
If you need to make a disclosure regarding your taxes or have been prompted to do so then it’s likely to be under of Code of Practice 9. Although COP9 can sound complicated, it needn’t be, and has one valuable benefit.
What is COP9? Does COP9 have any advantages?
It’s important to note that a COP9 investigation is one of the most serious types of investigation. A Code of Practice 9 case is only one step down from full criminal investigation. Therefore, it’s important to appoint a COP9 professional to aid you in the COP9 process as soon as possible. However, a COP9 investigation can offer a distinct advantage to the taxpayer involved.
An investigation carried out under COP9 offers the taxpayer suspected of fraud immunity from criminal prosecution. In return, HMRC expects a full and honest disclosure regarding their tax affairs. The investigation can be initiated by either HMRC or the taxpayer themselves.
If HMRC suspect someone of serious tax fraud then will issue the taxpayer with Code of Practice 9 notice. The taxpayer will then have 60 days, in which time they are either required to deny the allegations and therefore the offer of protection from prosecution, or admit to carrying out of tax fraud and complete the ‘outline disclosure’ – outlining their activities in general terms.
If you wish to make a disclosure regarding tax fraud, whilst being protected from criminal prosecution, then this can be done by applying to HMRC to make a disclosure under the ‘CDF’ (contacted disclosure facility). Again, you will then have 60 days to either accept or decline the contract once issued. This should not be undertaken without the guidance of a professional.
How long will a COP9 investigation/disclosure take?
Due to the individual and complex nature of Code of Practice 9 cases, this is almost impossible to answer. Some cases can take several months, some several years.
However, instructing a professional can not only help reduce the time required to complete the process but can also reduce the amount of stress and work required on the tax-payer’s behalf. For example, we undertake all dealings with HMRC and compile the final report on our client’s behalf. This means that our clients simply need to provide the required information and ‘adopt’ the report once completed.
What will happen if I refuse the offer of a Code of Practice 9 disclosure?
Refusing HMRC’s offer to make a disclosure under COP9 can have extremely serious consequences. If you refuse the CDF (contractual disclosure facility) and HMRC subsequently uncover activity that is considered ‘serious tax fraud’ then they may pursue a criminal prosecution – potentially resulting in imprisonment.
No attempt should ever be made to deliberately conceal information regarding unpaid tax liabilities.
If you have any questions regarding your own tax affairs, believe that you may wish to make a COP9 disclosure or have received a COP9 letter from HMRC, please contact us for further advice.