Fraud Investigation Service Code of Practice 8

HMRC's Code of Practice 8 (fraud and bespoke avoidance) is operated only by the elite Fraud Investigation Service (FIS) branch of HMRC.  FIS is staffed by highly trained, experienced, high-flying investigators.   Fraud Investigation Service teams are based in each of the UK’s major cities.

FIS has a remit to deal with novel, unusual, and complex situations.  It only takes up cases where the likely “yield” (of tax, interest and penalties) is over £500,000.  Many of HMRC’s largest prosecutions started in the Fraud Investigation Service; and most of these started out as Code of Practice 8 "tax avoidance" cases; rather than as fraud cases.  If FIS 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 FIS COP 8 cases involve extensive approaches to 3rd parties (e.g. banks, business suppliers, customers, ex-employees, internet service providers etc).

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

Most worryingly COP8 is sometimes issued in suspected tax fraud cases, instead of the more usual Code of Practice 9. Unlike COP9, Code of Practice 8 does not guarantee a civil investigation and particular care needs to be taken to avoid the matter being converted to a criminal investigation.

FIS investigators have small caseloads and ample support staff (including qualified accountants and computer forensic experts), allowing them to devote considerable resource to each case.  Dealing with a Fraud Investigation Service 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 HMRC Fraud Investigation Service cases produce penalties, and some do not yield any extra tax.  However, persuading the world-weary and sceptical FIS 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.  In particular, Andrew Nutbrown (our Senior Consultant) is an ex-FIS Code of Practice 8 Group Leader.

If you, or your client, have received a Fraud Investigation Service Code of Practice 8 (fraud and bespoke 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 : 0845 643 9997; or

Andrew Nutbrown : 0771 877 8710

HOW WILL

Lynam Tax Enquiry Experts HELP ME?

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

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

For a helpful, sympathetic, confidential and no obligation discussion:

For a helpful, no obligation, wholly confidential discussion:

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Email: partners@lynamtax.co.uk

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We would have no hesitation in recommending them, both Paul and Gemma were professional, competent and most of all very aware of our anxieties regarding the entire process. Their efficiency led to a timely and satisfactory outcome to our case.

Peter & Yvette, 24 October 2015.

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