Role of the agent

By Tolley in association with Guy Smith of inTAX Ltd
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The following Owner-Managed Businesses guidance note by Tolley in association with Guy Smith of inTAX Ltd provides comprehensive and up to date tax information covering:

  • Role of the agent
  • Introduction
  • Where does the agent start?
  • The client wants to pursue the CDF route ― what should the agent do?
  • The client is following the non-cooperation route ― what should the agent do?
  • The HMRC officer wants to meet the client in person
  • Managing Deliberate Defaulters (MDD) scheme
  • Ongoing matters
  • The general rule
  • CDF letters issued prior to 30 June 2014

Introduction

HMRC’s regime for handling serious fraud cases is called the Contractual Disclosure Facility (CDF). Code of Practice 9 (COP9) governs how HMRC investigates suspected fraud and sets out the rules and conditions of the CDF policy. Under CDF, HMRC no longer guarantees not to prosecute, as it did previously, except where the person involved enters and fully complies with the terms on offer as part of the CDF.

The CDF was changed with effect from 30 June 2014 to remove the option of denying the fraud in response to the initial letter from the HMRC, leaving the taxpayer with following two options:

  • to accept the CDF regime, ie admit to the fraud and make a full disclosure to HMRC, or
  • not to cooperate with HMRC, in which case he has no protection against a criminal investigation

The references to ‘fraud’ have also been removed from the ‘admission statement’ from that date, and instead, the taxpayer must admit to ‘deliberate’ behaviour. It is not entirely clear what HMRC means by an admission statement, but it is assumed to mean the ‘contract acceptance letter’ and the ‘outline disclosure form’.

Agent update 42 

COP9  was updated on 30 June 2014 to reflect the changes.

The CDF was changed with effect from 30 June 2014 to remove the option of denying the fraud in response to the initial letter from the HMRC, leaving the taxpayer with following two options:

  • to accept the CDF regime, ie admit to the fraud and make a full disclosure to HMRC, or
  • not to cooperate with HMRC, in which case he has no protection against a criminal

More on Contractual Disclosure Facility: