Civil penalty investigations—Statement of Practice
The information in this notice has been superseded by “Code of Practice 9: where HM Revenue and Customs suspect fraud (COP9)”, for investigations started after 31 January 2012 where HM Revenue and Customs suspect fraud.
1.1 What is this notice about?
This notice explains what happens when HM Revenue and Customs (HMRC) investigate your VAT affairs under the Civil Evasion Penalty (CEP) Notice 730 procedure. It outlines—
— our approach to reaching an agreement with you on the nature, extent and reason for any VAT irregularities; and
— how you can reduce any penalty that we may impose.
In April 2002 we introduced a new approach to VAT civil evasion investigations. Details as to how it operates can be found in our Statement of Practice entitled “VAT civil evasion cases: A New Approach to investigations” (VAT Information Sheet 1/02). Section 5 of this notice explains how the new approach can affect the level of penalty under the CEP Notice 730 procedure.
Main narrative treatment—V5.331.
1.2 What's changed?
The address for sending your comments or suggestions has been updated.
1.3 Why do Customs & Excise investigate fraud?
We want you to pay the right amount of tax at the right time and we will do everything we can to ensure this happens. We aim to collect the right amount of tax with any interest and penalties that may be due.
Most taxpayers do declare and pay what is due. Unfortunately, some deliberately try to pay less than is due. When we think this