FCIM220010 - Where CDF offer is made 30 June 2014 onwards: appendices: appendix 1 - investigation of fraud statement

The HMRC Investigation of Fraud Statement

The Commissioners of HMRC reserve complete discretion to pursue a criminal investigation with a view to prosecution where they consider it necessary and appropriate.

In cases where a criminal investigation is not started, the Commissioners may decide to investigate using the Code of Practice 9 (COP9) investigation of fraud procedure.

Under the investigation of fraud procedure, the recipient of COP9 is given the opportunity to make a complete and accurate disclosure of all their deliberate and non-deliberate conduct that has led to irregularities in their tax affairs.

Where HMRC suspects that the recipient has failed to make a full disclosure of all irregularities, the Commissioners reserve the right to start a criminal investigation with a view to prosecution.

The term ‘deliberate conduct’ means that the recipient

  • knew that an entry or entries included in a tax return or accounts were wrong, but submitted them anyway, or
  • knew that a liability to tax existed but chose not to tell HMRC at the right time.

In the course of the COP9 investigation, if the recipient makes materially false or misleading statements, or provides materially false documents, the Commissioners reserve the right to start a criminal investigation into that conduct as a separate criminal offence.