In cases of serious fraud, where the taxman believes there is a risk of not being able to secure full payment, HMRC can take the extreme action of freezing all of a taxpayer’s assets. In a recent case in the Chancery Division they secured a worldwide freezing order against taxpayers they alleged were involved in large-scale fraud.
In the case of CIR vs Cozens and Others, the taxpayers argued that they were not aware that a fraud had been taking place, and therefore no freezing order should be allowed. However, the judge in the Chancery Division issued the worldwide freezing order for the following reasons: HMRC had a good arguable case and there was a real risk that the taxpayer would otherwise put his assets beyond the reach of Her Majesty’s Revenue & Customs.
This type of extreme action by the taxman is usually only contemplated in Criminal Prosecution cases and in the most serious cases of Suspected Serious Fraud (Code of Practice 9) operated by the elite Specialist Investigations unit.
Lynam Tax Investigation Experts have a vast amount of practical experience in managing serious tax fraud investigations. If you are worried about a tax investigation we can advise you on the best course of action. If appropriate, we can help you manage any necessary disclosures. If you are facing criminal charges we can help you obtain first class legal representation, in order to obtain the optimum outcome for you, your business and your family.
*For a free, private, no obligation consultation, call Paul Lynam today on 0845 643 9997