COP9 Investigation & Why You Should Not Worry

Posted by Lionen Fuentes on February 6th, 2023

Received a COP9 investigation letter? Worried about how to fix things? Just relax! The subsequent steps required at your end are simple and easy to accomplish. You just need to seek some professional assistance to get started.
Reasons for COP9 investigation
HMRC COP9 investigation usually takes place when the HMRC suspects a serious loss of tax through the fraudulent activity of taxpayer, provided the taxpayer does not have any past history of fraud. The purpose of the letter is to provide a chance to the taxpayer to declare any loss of tax. The time period to accept or reject the offer is usually 60 days. Within this time period, you have to own up for any loss of taxpay that you have conducted deliberately.

CDF Offer Acceptance
Most of the taxpayers are usually confused whether or not to accept the CDF offer. An acceptance of the offer would receive an immunity from the HMRC in return of your activities. It could be either admitting the deliberate tax loss, disclosure of the errors, omissions and irregularities or cooperation with the HMRC. The immunity will be received only against of whatever you disclose. They will not advise you about the other risks identified.
However, remember that it is not necessary to accept the letter just because you have received it. It might be difficult for you to analyze all the minute details especially if you are not an expert in the field. It is thus advisable to seek professional help. There are many expert professionals who are highly knowledgeable in code of practice 9 and can guide you with the needful.
CDF Offer Rejection
Taxpayers often have a question in their mind about what could happen in case of rejection of a CDF offer. You should reject the offer only if you have defaulted deliberately and wish to admit the same. Again, it is might not be easy for you to understand the legal implications of your activities or in case you have done any mistake during the process. Legal help would thus be helpful here as well.
Consequences of CDF Offer Rejection
In case you choose to reject the offer, HMRC will either conduct a more detailed COP9 investigation. It may even lead to a criminal investigation in cases. A COP9 Investigation Specialist will be able to guide you through the subsequent steps so that you can complete the process smoothly.
For more info visit https://www.gov.uk/government/publications/code-of-practice-9-where-hm-revenue-and-customs-suspect-fraud-cop-9-2012