Civil investigation of fraud, tax fraud investigation,- a five point plan  

If you have been contacted by HMRC's Civil Investigation of Fraud Unit, you need to act quickly

As soon as you receive notification that your finances are to be investigated by HMRC under their Civil Investigation of Fraud Code of Practice 9 procedures, we would advise you begin to take the following steps that will help you to resolve the tax investigation in a reasonable manner:

1. Appoint an adviser

You should consider using the services of a specialist tax investigation adviser. Civil Investigation of Fraud, whilst not a criminal investigation, is still extremely serious and can also be very complex. It is vital that you appoint an adviser that understands the Code of Practice 9 procedures, has experience in guiding clients through the Civil Investigation of Fraud process and who can represent your interests effectively and efficiently in all dealings with HMRC. You will need to take this adviser fully into your confidence and be completely open and honest in order to achieve the best possible outcome.

2. Collect all the relevant documents

Unless your notice of Civil Investigation of Fraud specifies the tax areas under examination, you should assume that it will cover some if not all of the following:

• Personal income tax
• Capital gains tax
• Corporation tax
• Tax on Investment Income
• National Insurance contributions
• VAT
• Excise and customs duties

You must collect together all the documents and paperwork you have that are related to these areas so that your adviser can see the full extent of your current financial situation.

3. Don't leave anything out

This is your opportunity to be completely honest with HMRC. Anything you deliberately conceal during a Civil Investigation of Fraud tax investigation may lead to a criminal prosecution. Making a full and frank disclosure to HMRC can assist your current position and reduce the potential penalties for any underpaid tax.

4. Attend the meeting

As part of the Civil Investigation of Fraud, a meeting will be requested to discuss your tax affairs in details. Where appropriate it can be beneficial if you and your adviser attend the meeting, which will be with an officer of HMRC who is authorised to issue you with the Civil Investigation of Fraud procedures. This meeting will be the only opportunity you will get to explain your current position, so make the most of it by preparing well with your tax adviser and being up-front with the HMRC representative. It is not advisable to have a meeting if you are not fully prepared for what is going to happen.

5. Remember your responsibilities

Even if you appoint an adviser, the responsibility for declaring all your income and making your tax affairs transparent lies with you. Don't assume that your tax adviser will be responsible for any omissions or errors. It is up to you to ensure that they have all the information they need in order to help you get the best result from the Civil Investigation of Fraud process.

The Civil Investigation of Fraud procedures are treated very seriously by HMRC and you should always make sure that you have the best advice possible to ensure that you move through the process as smoothly as possible.

If you would like to discuss any possible disclosure to HMRC or any matter to do with the potential tax amnesty or how to deal with any tax evasion difficulties please phone 0800 734 3333 or e-mail scott.gilbert@gilberttax.co.uk now

For more information about the different types of tax investigation cases we deal with on a regular basis please click here.

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