Civil Investigation of Fraud (CIF)

HMRC’s Code of Practice 9 procedures are the most serious and worrying of all tax investigations (apart from criminal prosecutions).  COP 9 is titled:  Civil Investigation into Cases of Suspected Serious Fraud.  It is usually issued where the taxman believes he has strong evidence of tax being under-declared but has decided not to prosecute; if the recipient co-operates fully.

A badly managed Civil Investigation of Fraud (CIF) Investigation can turn into a long running and deeply intrusive investigation.  Penalties in most COP 9 cases will range from 35-200% of the tax the inspector thinks has been evaded.   Where the tax investigator thinks an incomplete disclosure has been made they may try to prosecute.

COP 9 investigations are carried out by only two specialist units in HMRC; either the regional Civil Investigation of Fraud units or the elite Specialist Investigations teams.  Both are staffed by highly trained, experienced and committed tax fraud investigators.  They conduct investigations into Suspected Serious Fraud (i.e. tax evasion).  Code of Practice 9 enquiries cover all taxes:  Corporation Tax, Income Tax, Capital Gains Tax, PAYE and VAT.

CIF units only issue COP 9 if they believe they have solid evidence of serious tax evasion and the total yield of tax, interest and penalties will be a minimum of £75,000.  Specialist Investigations (SI) only work cases where they anticipate collecting over £500,000.  However, we have experience of demonstrating to the taxman that a significant number of COP 9 cases were investigated for incorrect reasons, and have had a number of cases closed with no additional money to pay.  However, on the whole, CIF cases are usually started on the basis of firm evidence and need to be taken very seriously.  It is essential you take proper advice from qualified and experienced professionals.

COP 9 offers the chance to avoid prosecution and help penalties down but it requires you to produce a Full Disclosure Report.  A thorough professional Disclosure Report will keep out of prison and reduce your penalties.  A badly prepared report increases your risks. Civil Investigation of Fraud investigations can be very intrusive and stressful. The procedures are clearly set out in COP9 but have many pitfalls for the inexperienced.  Failure to deal properly with a CIF investigation can lead to Criminal Prosecution, and at best will lead to a long drawn out investigation with high penalties; which can be up to 200% of the extra tax they say is due.

How can Lynam Tax Enquiry Experts help me?
Lynam Tax Enquiry Experts have vast experience of successfully dealing with COP9 investigations and CIF cases, relieving their clients’ stress and negotiating optimum outcomes. We can help you save tax, interest and penalties.  We can save you years of stress, worry and disruption.  And we can help you avoid a criminal investigation.
If you, or your client, have received an HMRC Code of Practice 9 you need specialist help now.  Do not delay.

For an initial free and totally confidential discussion,

Call Paul Lynam now: on 0845 643 9997