Civil Investigation of Fraud, Tax Investigation,: Offshore bank accounts and Tax Evasion, Tax Amnesty  

Are you defrauding the tax man? If so, expect the potential problem of falling into the Civil Investigation of Fraud procedures

What is it about offshore bank accounts and investments that make them so attractive? That’s easy – for most people, it’s the belief that there won’t be any tax to pay on the interest they earn or the capital gain they make. It is also a way of hiding monies obtained by tax evasion from HMRC. Unfortunately, for many UK residents, tax on offshore investments is still due and if you haven’t declared it, you could be the subject of a tax investigation, often using the Civil Investigation of Fraud procedures.

Why me?

Just as many people think using their mobile phones whilst driving “isn’t really breaking the law” and making up a couple of extra things on their insurance claim “isn’t really illegal”, so the majority of those UK residents with offshore accounts think that omitting this income from their tax returns “isn’t really tax fraud”. HMRC doesn’t see it that way which is why it’s focusing quite a lot of its investigative energy into reclaiming hundreds of thousands of pounds of unpaid tax – and additional revenue from penalties and interest. It is taking it so seriously and has so much information it is considering offering some form of Tax Amnesty. If you’re served with a notice of intent to enquire into your tax affairs using the Civil Investigation of Fraud proceedings, it’s because HMRC believes you have underpaid tax in excess of £75,000. This could be from your offshore income – or other income on which tax has not been paid at all.

What shall I do?

You need to find all the available documentation relating to your offshore accounts and any underlying tax fraud. This will include credit cards registered to or paid from offshore banks, any property you own outside the UK and any other overseas investment. It will also include a full review of your business records and personal financial information. As part of the Civil Investigation of Fraud procedures HMRC will expect your adviser to see full records that show the capital invested and interest earned, dividends paid, rental income received and any other returns that may be taxable. This is your only chance to resolve any tax issues through a civil process – if you fail to be completely honest, HMRC could decide to pursue your case as a criminal fraud. That’s why you need the advice of a good tax investigation expert so that your Civil Investigation of Fraud case can be closed as soon as possible.

What if I do not have the Information?

The Civil Investigation of Fraud process involves preparing a report that can cover your last 20 years of tax history. HMRC acknowledges that information relating to your tax affairs may not be available for that period. To piece together your tax history from the information available and by using best estimate judgements that HMRC can accept will take considerable expertise and experience. Appointing a tax investigation specialist who has experience of undertaking this kind of work can reap benefits in guiding you through the Civil Investigation of Fraud procedures.

If you have received notice from HMRC of a tax investigation or Civil Investigation of Fraud proceedings, call us for help and advice today. All enquiries are strictly confidential, so 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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