11/01/12: New Procedures in HMRC’s Investigation of Tax Fraud
HM Revenue and Customs (‘HMRC’) will introduce tougher procedures for civil
fraud investigations later this month, the Department announced today. The new Contractual Disclosure Facility (‘CDF’) will be launched on 31 January 2012.
Under the new facility, HMRC will contact a taxpayer in writing to inform
them that they are suspected of serious tax fraud and offer them the
opportunity to enter into a contract to disclose that fraud within 60 days.
In return, HMRC will agree not to criminally investigate, thereby removing the risk
of prosecution. The investigation will then be carried out using
civil powers with a view to a civil settlement for tax, interest and a financial penalty.
fraud investigations later this month, the Department announced today. The new Contractual Disclosure Facility (‘CDF’) will be launched on 31 January 2012.
Under the new facility, HMRC will contact a taxpayer in writing to inform
them that they are suspected of serious tax fraud and offer them the
opportunity to enter into a contract to disclose that fraud within 60 days.
In return, HMRC will agree not to criminally investigate, thereby removing the risk
of prosecution. The investigation will then be carried out using
civil powers with a view to a civil settlement for tax, interest and a financial penalty.
Those who choose not to make this commitment will face a full HMRC investigation,
in some cases a criminal investigation with a view to prosecution.
Further, anyone who signs the contract but does not go on to admit and disclose
fraud will also face the possibility of a criminal investigation.
in some cases a criminal investigation with a view to prosecution.
Further, anyone who signs the contract but does not go on to admit and disclose
fraud will also face the possibility of a criminal investigation.
Taxpayers who are not under investigation but who want to admit to tax
fraud may fill out a form to voluntarily request that HMRC consider their
suitability for a CDF arrangement. HMRC still retains the
discretion to decide which cases are dealt with civilly and which are
investigated with a view to criminal prosecution.
fraud may fill out a form to voluntarily request that HMRC consider their
suitability for a CDF arrangement. HMRC still retains the
discretion to decide which cases are dealt with civilly and which are
investigated with a view to criminal prosecution.
Please contact us if you consider that we can be of assistance to you in any issue arising with HMRC.
