Denial is no longer an option under COP9

From the end of June 2014 HMRC had closed the door on one option for individuals who are under investigation for tax fraud.

Once an individual receives a letter from HMRC they will be notified that they are under investigation under Code of Practice 9 (COP9 ). COP9 will outline the options available to the individual. The Contractual Disclosure Facility (CDF) is the most favourable facility.

Previously under COP9 individuals were allowed to take three options; using the CDF, non-cooperation or denial. The option of denial allowed individuals to engage with HMRC during the investigation. However, under new HMRC guidelines, the option of denial no longer allows individuals the opportunity to cooperate with HMRC, and as a result, they will fall under a full investigation.

If found of committing tax fraud, having denied allegations, the individual will often face harsher penalties and the heightened possibility of prosecution.

Under the CDF, the individual can admit to committing tax fraud and cooperate with HMRC throughout the investigation. This also guarantees immunity from prosecution.

We strongly recommend that if you receive a letter from HMRC you should contact a tax investigations professional. Engaging with HMRC directly could often dig you into a whole.

At Forths we are experienced in dealing with HMRC and its investigators and therefore we are able to support you through your investigations.

For advice in complete confidence from tax investigations professionals call 0113 387 5670 or fill out an Enquiry Form