Fraud civil investigation - COP9 offers made with effect from 30 June 2014 - closing the case

By Tolley
VAT_tax_img6

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Fraud civil investigation - COP9 offers made with effect from 30 June 2014 - closing the case
  • Settling the case
  • Penalties
  • Indirect tax
  • The interaction between 'new' penalties and 'old' penalties
  • 'New' penalties
  • Mitigation where a detailed disclosure report not submitted
  • Issuing an assessment
  • Publishing Details of Deliberate Defaulters (PDDD)
  • Managing Serious Defaulters (MSD)

This guidance note provides an overview of the procedure that will be used by HMRC to settle a CDF case where an offer was made from 30 June onwards. This note should be read in conjunction with the Fraud civil investigation - COP9 offer made from 30 June 2014 - overview, Fraud civil investigation - COP9 offer made from 30 June 2014 - Initial meeting and Fraud civil investigation - COP9 offers made from 30 June 2014 - the disclosure guidance notes.

Settling the case

Once the investigator has concluded their investigation the case will be referred to the Authorising Officer (AO) at HMRC who will then approve the basis upon which the case will be settled with the taxpayer. The investigator will prepare a report that covers all of the taxes included within the scope of the investigation that provides details of the facts that have been established and the conclusions reached by the investigator. The application of any penalties will also be covered in the report and any penalties will need to be approved by the AO. Investigators will not discuss the penalties that could be imposed with the taxpayer until the AO has agreed them.

FCIM200000

HMRC will consider the taxpayer’s behaviour and the level of cooperation that they have provided during the entire investigation as this will have an impact on the amount of the final penalty imposed by HMRC. HMRC will make a record of the taxpayer’s behaviour and cooperation throughout the investigation as this will be used when deciding the appropriate level of penalty to impose. Once the final amounts have been agreed by HMRC an assessment will be issued to the taxpayer for indirect taxes due. For direct taxes, HMRC can either issue a formal assessment or enter into a settlement contract (see below).

Penalties

If HMRC can

More on Investigations: