HMRC Code of Practice 9 (COP9)

HMRC Code of Practice 9 (COP9) Advice

Code of Practice 9 is issued to individuals under the Contractual Disclosure Facility (CDF) when HMRC suspect serious tax fraud. The code of practice itself is a practical guide to how the enquiry will be conducted and importantly what is expected from the individual who receives the letter, and also what they can expect from HMRC’s officers during the course of the enquiry. COP9 is reserved for the most serious of Civil Tax investigations and should therefore be handled with great care.

Tax Dispute Advice - 0113 387 5670

On reading the code of practice it is important to understand that HMRC are offering the individual an opportunity to admit they have committed a previous tax fraud, and are providing them with a civil (non criminal) disclosure route by which to rectify any previous deliberate behaviour.

From 1st July 2014 any individual receiving a letter from HMRC informing them that will be investigated under COP9 face two choices. They can either enter into the CDF and cooperate fully, or risk the possibility of a full tax investigation, without cooperation with HMRC, which may lead to further financial penalties and even criminal prosecution. 

In exchange for full and complete cooperation HMRC agree not to pursue a criminal investigation into the individual’s tax affairs. The code of practice has been developed to allow individuals who are in receipt of this booklet to make an accurate and informed decision on how they choose to cooperate with HMRC. In our experience those Individuals who do fully cooperate with the process receive lower financial penalties and a less intrusive investigation than those who do not.

Contractual Disclosure Facility (CDF)

The CDF process is designed so that all individuals who receive COP9 can expect the same treatment from HMRC. In brief the process is as follows;
  • On receipt of the CDF letter the individual has 60 days in which to provide HMRC with an outline of the disclosure they wish to make.
  • Subject to HMRC’s acceptance of the disclosure an opening meeting will be arranged with the individual and their adviser.
  • This meeting will encompass not only the disclosure previously submitted, but also include all aspects of their financial affairs both personal and business.
  • During the meeting the individual will be asked to commission a disclosure report and to agree to submit a series of forms including a certificate of full disclosure.
  • The individual will then be asked to submit this disclosure report within a prescribed timescale (usually 6months).
  • Following submission of the disclosure report HMRC will then test the quantum of the disclosure and ask any supplementary questions.
  • Once HMRC have agreed the report and the liabilities have been settled, the process is completed.
It must be noted that if an individual does not engage with the CDF process and a disclosure is not forthcoming HMRC reserve the right to open a full investigation either on a civil or criminal basis into the individual’s tax affairs. 

HMRC recommends that you seek advice from a tax professional to assist you in making a disclosure and to guide you through the investigation process. At Forths we are experienced in advising clients under COP9.

To discuss your circumstances with trusted and experienced tax investigation professionals in complete confidence please call 0113 387 5670 or fill out an Enquiry Form.

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