Tax Investigations

Code of Practice 9

We have acted in a number of tax investigation cases, providing independent accounting and taxation advice where individuals or businesses may have intentionally refrained from payment of taxes on their historically accumulated wealth or assets.

Where HM Revenue & Customs have reason to suspect a taxpayer has committed tax fraud, a notice is issued under Code of Practice 9 (‘COP9’) to allow the taxpayer to make complete disclosure of their deliberate and non-deliberate tax offences, thereby avoiding the Crown commencing a criminal investigation into tax offences which may ultimately lead to prosecution and providing an opportunity to settle.

Our Forensic Services team have assisted clients in agreeing a Contractual Disclosure Facility with HMRC to fully disclose their tax affairs and agree a settlement of any unpaid tax liabilities arising as a result of the investigation.

We will liaise with company accountants and third parties to prepare a Disclosure Report on behalf of the taxpayer, detailing 20 years of personal and business activity (as required) and advising on specific matters raised by HMRC during the course of their enquiries.

We can attend meetings with HMRC on behalf of the client as their professional advisor, and ensure all aspects of the contractual disclosure are fully complied with, to avoid any criminal implications arising.

Our specialist team can help you with:

  • Code of Practice 9 Investigations
  • Contractual Disclosure Facility (CDF) agreed between taxpayer and HMRC
  • Full disclosure of 20 years of personal and business activity
  • Full disclosure and calculation of unpaid tax liability
  • Liaising with HMRC and attending meetings as client representative
  • Negotiating settlement payment of unpaid tax liability on client’s behalf

Tax Avoidance Schemes

Our team have assisted Insolvency Practitioners and legal professionals representing company Directors, in advising on companies which have historically utilised tax avoidance schemes, often in the form of Trust entities.

These schemes are not approved by HMRC and payments into such schemes are now deemed to constitute disguised remuneration by HMRC, with the paying company incurring an additional tax liability on the unpaid PAYE and National Insurance Contributions due on the remuneration paid.

HMRC are in a position to issue proceedings against individuals who have benefitted from the use of such schemes, where the associated tax liability has not been repaid by 5 April 2019.

We can provide a Forensic Report on a company’s use of a tax avoidance scheme, to quantify the additional tax liabilities due and provide an understandable report on how the scheme worked to assist in settling the liability with HMRC and avoiding further legal action.

Where a company is subject to a formal insolvency procedure, we are well placed to assist Insolvency Practitioners in reviewing the conduct of company Directors with regards to the use of a tax avoidance scheme, and quantify any misfeasance claim existing with respect to Director conduct under the Company Director Disqualification Act 1986.

Our specialist knowledge in tax avoidance matters can identify where company value and assets have been transferred to a newly incorporated entity, and assist in achieving asset realisations for the benefit of creditors.

If you have reason to believe you have utilised a tax avoidance scheme in the past, please contact our Forensic Team today.

For a free consultation, please contact Maria McKenna.

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