“Three months ago, I received a call from a frantic entrepreneurial business owner. He’d just opened a brown envelope stamped with HMRC’s insignia. Inside: a COP9 letter accusing him of tax fraud. His voice shook. “I thought I’d done everything by the book.” But HMRC suspected otherwise, i.e. dishonest / wilful actions. And just like that, he entered one of the most serious forms of civil tax investigations the UK has to offer: Code of Practice 9.

What is Code of Practice 9 (COP9)?

Code of Practice 9 (COP9) is HMRC’s tool for tackling serious tax fraud. If you receive a COP9 letter, HMRC believes you have deliberately underpaid tax. The civil investigation begins with their Contractual Disclosure Facility (CDF) offer, giving taxpayers a stark choice: admit their deliberate behaviours and disclose everything in detail, or reject the CDF offer and risk a criminal tax investigation with a view to prosecution.

COP9 investigations are not routine nor restricted to single periods. They’re initiated when HMRC has compelling data suggesting tax evasion / fraudulent activity over a period. The process is stressful, complex, and has serious legal, financial and reputational consequences.”

See the full article published on LinkedIn: HMRC Code of Practice 9 (COP9): When Tax Fraud Gets Personal | LinkedIn