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Specialist Investigations Code of Practice 8

HMRC's Code of Practice 8 (tax avoidance) is operated only by the elite Specialist Investigations (SI) branch of HMRC . SI is staffed by highly trained, experienced, high-flying investigators. Specialist Investigations teams are based in each of the UK’s major cities.

SI has a remit to deal with novel, unusual and complex situations. It is also tasked to only take up cases where the likely “yield” of tax, interest and penalties is over £500,000. Many of HMRC’s largest prosecutions also started in Specialist Investigations; and most of these started out as Code of Practice 8 "tax avoidance" cases; rather than as fraud cases. If SI is involved it means the taxman believes the case is serious, large and complex and is going to lead to a large payment. Such enquiries can be very damaging; especially as most SI COP 8 cases involve extensive approaches to 3rd parties (e.g. banks, business suppliers, customers, ex-employees, internet service providers etc).

Most of its investigations into suspected "tax avoidance" will be into so-called "off-the-shelf", or "marketed avoidance schemes" (e.g such as offshore Employee Benefit Trusts) or arrangements which the taxman feels seem artificial, contrived or of marginal commercial purpose. Many COP8 cases feature complex arrangemnts: such as the routeing of payments through offshore companies; tax haven companies; multi-layer trusts and settlements; foundations and other opaque structures: often with an offshore dimension. SI also issue Code of Practice 8 in significant cases involving tax residence issues (of companies and individuals) and domicile issues.

SI investigators have small case loads and ample support staff (including qualified accountants and computer forensic experts), allowing them to devote considerable resource to each case. Dealing with a Specialist Investigations COP8 enquiry without your own specialist support can be risky (partly due to the risk of Criminal Prosecution or naming and shaming); very expensive (as the tax and penalties bill is likely to be far higher than necessary); and very time consuming. Penalties can be up to 200% of the extra tax they say is due.

How can Lynam Tax Enquiry Experts help me?
Not all Specialist Investigations cases produce penalties, and some do not yield any extra tax. However, persuading the cynical SI investigators of this, and more crucially gathering and presenting the evidence to do so, is a difficult task. But it's one which we at Lynam Tax have devoted our professional lives to.

If you, or your client, have received an SI Code Of Practice 8 (tax avoidance) then you need specialist help now. Do not delay. For a free, confidential, no obligation discussion with our Tax Investigation experts, call Paul Lynam now on: 0845 643 9997.

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We specialise in managing all Tax Enquiry, Disclosures & Tax Disputes with HMRC.

We will help you throughout the Tax Investigation and save you money, so you can concentrate on running your business and enjoying your private life.

CALL LYNAM TAX NOW: 0845 643 9997

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