| Tax Enquiry | About Tax Concern | Tax Investigation HMRC COP9 2005 | Personal Tax Enquiry HMRC COP11 | Company Tax Enquiry HMRC COP14 | VAT Enquiry HMRC PN160 | Student Tax Refund | Contact Tax Concern |
| Tax Enquiry | About Tax Concern | Tax Investigation HMRC COP9 2005 | Personal Tax Enquiry HMRC COP11 | Company Tax Enquiry HMRC COP14 | VAT Enquiry HMRC PN160 | Student Tax Refund | Contact Tax Concern |
► What is a Code of Practice 9 (2005)?
HM Revenue & Customs was created in April 2005, integrating the former Inland Revenue and HM Customs & Excise.
This Code of Practice applies only to investigations that started after 1 September 2005. It covers cases where there is suspected serious fraud and the opportunity to disclose fully all irregularities in your last 20 years tax affairs.
The investigation will be undertaken with or without your voluntary co-operation. If you do co-operate, the investigation will proceed, quickly, more efficiently and advantageously for both parties than if you refuse to co-operate.
The Code of Practice covers direct taxes including income taxes, corporation tax, capital gains tax, National Insurance contributions and indirect taxes including Value Added Tax and Excise and Customs duties.
This Code of Practice promises you a fair treatment under the law and the start of an investigation process into your last 20 years tax affairs.
Where the HMRC decide to investigate using the Civil Investigation of Fraud procedure - COP 9 (2005)/sample letter , they will not seek prosecution for the tax fraud which is the subject of that investigation. The taxpayer will be given an opportunity to make a full and complete disclosure of all irregularities in their tax affairs in the last 20 years.
QUESTIONS
► Why were my submitted self assessments (SA), vat returns, PAYE returns and corporation tax self assessments (CTSA) all wrong?
When you have received a Code of Practice 9 (2005) letter inviting you to attend a meeting, HMRC have written to you because they have grounds to suspect that there are irregularities in your tax affairs which they would like to discuss with you.
HMRC will not reveal to you the information they have obtained to raise their concerns. This is because the aim of an investigation under this Code of Practice 9 (2005) is to give you the opportunity to make a full and complete disclosure of all irregularities in all aspects of taxation.
► Who can help me now?
HMRC encourage you to appoint a professional advisor to represent you during their investigation - This is completely your decision.
Should you appoint professional representation, HMRC expects high standards from your chosen professional adviser.
The investigation process involves sending you an opening letter sample letter.
► I was and still the director and shareholder of the company, will I be under enquiry at the same time?
Yes!
► I was in a partnership and later in a company some years back but now I am self employed, what does this mean to me?
When someone is in receipt of this Code of Practice 9 (2005) it is a life time tax affairs that are being investigated and the law allows HMRC to go back to the last 20 years.
► Will I have to attend the meetings?
No, it is a matter for you to decide whether or not to attend meetings with HMRC as stated in the Code of Practice 9 (2005).
If you decide to attend the meeting you will be asked formal questions and you can only respond yes or no . There are five direct tax questions and four indirect tax questions.
► How long will HMRC allow the full disclosure to be made?
If you tell HMRC that there are matters that need to be disclosed, HMRC will invite you to provide a Disclosure Report.
The areas to be covered in the report will be:
A brief business history;
The nature of the irregularities and how they came about;
The extent of the irregularities;
Steps taken to verify amounts with supporting documentation and any assumptions made;
A detailed schedule of the irregularities for each period involved for each tax.
HMRC will agree a timetable for producing this report at the meeting. In most cases they will expect the disclosure report to be submitted within six months of the opening meeting.
HMRC expect you to demonstrate a willingness to agree realistic proposals to make early payment of arrears. For that reason they will invite you to make payments on account towards any tax arrears, both at the initial meeting, and throughout the investigation.
► How long is the investigation?
HMRC will close the investigation as soon as they are satisfied that your tax affairs are in order as stated in the Code of Practice 9 (2005).
► How far back can they go?
The last 20 years , in other words it is your business life time.
► What are the HMRC's areas of concern that there had been irregularities in the past?
HMRC's areas of concern are the areas we specialise in - Click Here.
► Do the directors, company secretaries, shareholders have to attend meetings?
The directors and employees of the company are not obliged to come to any meeting, state in the Code of Practice 9 (2005).
► How much extra tax (SA, CTSA, VAT and PAYE) to pay?
HMRC opens this Code of Practice 9 (2005) and expects to receive up to £500,000 all inclusive.
► How are penalties worked out?
The penalty figure will be a percentage of the tax underpaid. In law it could be 100% of that amount.
HMRC start with a figure of 100% and reduce it by an amount which depends on three factors:
If you make a full disclosure at the time HMRC first open the enquiry, you will get a considerable reduction in the amount of the penalty.
If you deny until the last possible moment that anything is wrong, you will get little or no reduction for disclosure.
Between these two extremes a wide variety of circumstances is possible. HMRC will consider how much information you gave, how quickly, and how that contributed towards settling the enquiry.
If you supply information quickly, attend interviews, answer questions honestly and accurately, give all the relevant facts and pay tax on account when it becomes possible to estimate the amount due, you will then get the maximum reduction for co-operation.
If you put off supplying information, give misleading answers to questions, do nothing until we take formal action against you and generally obstruct the progress of the enquiry you will not get any reduction at all.
Between these extremes there is a wide range of possible circumstances and we will look at how well you have co-operated with the enquiry.
Your actions may amount to a premeditated and well-organised fraud or something much less serious. We will take into account what you did, how you did it, how long it went on and the amounts of money involved. The less serious the offence, the bigger the reduction in the penalty.
► Will I have to pay VAT?
Yes and it is included in the disclosure reports.
► Will I have to pay PAYE separately?
No and it is included in the disclosure reports
 |
 |