Admit tax fraud to HMRC using the Contractual Disclosure Facility

Report fraud

ThisIf guide explains what you mustwant doto ifreport HMRCsomeone suspectselse youfor of committing tax fraud and offers you acan contracttell throughHMRC. theYour Contractualinformation Disclosurewill Facilitybe (CDF).

Ithandled alsosecurely explainsand whatsafely and you should do ifnot youhave want to voluntarilygive admityour toname.

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to fraud

About the Contractual Disclosure Facility

TheIt Contractualalso Disclosureexplains Facilitywhat isto thedo opportunityif for you want to tellown HMRCup aboutvoluntarily anyto taxcommitting fraud you have been involved in.fraud.

YouThe canContractual Disclosure Facility is only usesuitable thefor Contractualpeople Disclosurewho Facility towant to admit to tax fraud. YouIt mustis not usefor thepeople facilitywho want to tell HMRC about errors, mistakes or avoidance schemes thatwhere arethere is not related to fraud.

The Contractual Disclosure Facility covers the broad range of taxes, duties and paymentslevies administered by HMRC. If the tax fraud involves companies or other entities, we can offer the use of the Contractual Disclosure Facility to the responsible individuals.

The

About Codethe ofContractual PracticeDisclosure 9 (COP9) explains:

Facility

• how

  The the ContractualContractual Disclosure Facility works

• whatFacility HMRCis dothe ifopportunity theyfor suspectyou someoneto oftell committingHMRC taxabout fraud
• whatany beingtax suspected of fraud means for you andhave whatbeen yourinvolved rights are

If you are offered a Contractual Disclosure Facility contract

If HMRC write to you because you’re suspected of committing a tax fraud, the letter will offer you a ContractualCDF Disclosure Facility contract and will include:

• an acceptance letter
• a rejection letter
• a disclosure form
• a copy of Code of Practice 9 (COP9)

Under the Contractual Disclosure Facility, you have 2 options:

• own up to bringing about a loss of tax through your deliberate behaviourconduct — you do this by accepting the offer of the Contractual Disclosure Facility
• reject the offer of the Contractual Disclosure Facility

What happens if you own up to committing fraud

If your deliberate behaviourconduct has brought about a loss of tax, you shouldmust considerthink ifabout whether using the Contractual Disclosure Facility is right for you.

If you decide it’s right, you should sign up to the ContractualCDF Disclosurecontract Facilitywith contract.HMRC. This means that both you and HMRC agree to stick to the terms and conditions of the contract.

Deadline

HMRC forwill acceptingagree anot Contractualto Disclosurecriminally Facilityinvestigate contract

Youwith havea 60view days to decideprosecuting if you wantfor to accept HMRC’s offer of the Contractualdeliberate Disclosureconduct Facility.you Thetell 60them dayabout periodin will run for 60 calendar days after you get the ContractualCDF Disclosure Facility letter from HMRC.contract.

ThisYou deadlinewill:

• admit canthat onlyyour bedeliberate extendedconduct inhas exceptionalbrought circumstances.about Ifa youloss thinkof thistax
• tell appliesHMRC toabout you,all email:the centre.cop9@hmrc.gov.uk.tax Youlosses willbrought getabout aby responseyour withindeliberate 7conduct
• give days.

  Duringas themuch 60detail dayas period, HMRC will not contact you unlesscan youwithin have60 tolddays themof youbeing eitheroffered dothe orcontract

• give doadditional notdetails, wantin tothe provideform details of taxa fraud.

  HMRCreport, canfollowing still:

  • takethe action60 againstday goodsperiod you— owninclude ora possess
  • startstatement orthat continueyou debthave collection
  • continuegiven anyHMRC othercomplete actionand that’saccurate neededdetails as part of HMRC’syour legaldeliberate obligationsconduct

  If

  Accepting youHMRC’s accept the offer of the Contractual Disclosure Facility

  HMRC willis agreethe only way to guarantee that HMRC will not criminally investigate with a view to prosecuteprosecuting you for the deliberatetax behaviourlosses youyour telldeliberate themconduct aboutbrought in the contract.about.

  YouIf will:

  • admityou thatmeet your deliberateside behaviourof hasthe broughtcontract, aboutyou’ll amake losssure ofthat tax,any dutypenalties orare paymentcloser administeredto HMRC
  • tellthe HMRClower aboutpenalty alllevels.

    Timescales

    You thehave tax,60 dutydays andto paymentdecide losseswhether broughtyou aboutwant byto youraccept deliberateHMRC’s behaviour

  • giveoffer asof muchthe detailContractual asDisclosure youFacility. canThe within 60 daysday ofperiod beingwill offeredrun thefor contract
  • give60 additionalcalendar details,days inafter you get the formContractual ofDisclosure aFacility disclosureletter report,from followingHMRC.

    This thedeadline 60can dayonly periodbe —extended includein aexceptional statementcircumstances. thatIf you havethink giventhis applies to you, contact HMRC completeby andemail accurateat detailscentre.cop9@hmrc.gov.uk ofwith your deliberatecircumstances behaviour.

  • fullyand cooperateyou’ll withget usa toresponse putwithin your7 taxdays.

    During affairsthe in60 order

  • payday anyperiod, tax,HMRC duty,will interestnot andcontact penaltiesyou thatunless you owe

  Acceptinghave HMRC’stold offerthem ofyou theeither Contractualdo Disclosureor Facilitydo andnot makingwant ato fullprovide disclosuredetails isof thetax onlyfraud.

  HMRC waycan tostill:

  • take guaranteeaction thatagainst HMRCgoods willyou notown criminallyor investigatepossess
  • start withor acontinue viewdebt tocollection
  • continue prosecute.

    Weany willother consideraction howthat’s youneeded co-operatedas inpart meetingof theHMRC’s termslegal ofobligations

  What thehappens contractif whenyou wereject workthe outoffer anyof penaltiesthe due.

  Contractual Disclosure Facility

  If you reject the offer of the Contractual Disclosure Facility

  Facility, HMRC may begin a criminal investigation into your tax affairs at any time. The letter you have signed can be used in court as evidence to show that you intended to deliberately mislead HMRC.

  Following your rejection, someone in HMRC will contact you to explain what will happen next and what you need to do.

  If

  What happens if you do not reply to HMRC’s letter

  If HMRC do not hear from you within the 60 days, either to accept or reject the offer of the Contractual Disclosure Facility, we’llthey’ll assume you have chosen not to co-operate. HMRC will begin either a civil or a criminal investigation into the suspected tax fraud.

  VoluntarilyOwning admitup to tax fraud voluntarily

  YouIf canyou have committed tax fraud and you want to own up to this, let HMRC know.

  By filling in the contractual disclosure form CDF1 you can ask HMRC to consider you for a ContractualCDF Disclosurecontract. Facility contract (form CDF1). You do not needhave to wait for HMRC to contact you.

  HMRC do not needhave to offer you a contract, and will not be unableable to if you’re already involved in a criminal investigation by HMRC or another law enforcement agency (such as the police).

  If you’re already dealing with HMRC on other tax issues,issues but want to be considered for the Contractual Disclosure Facility, discuss this with the HMRC officer dealing with your case.

  Appointing an advisoradviser or agent

  We strongly advise that you get independent advice before you:

  • you complete any Contractual Disclosure Facility letter or form
  • form, or ask if you can enter into a ContractualCDF Disclosure Facility contract
  contract.

  If you have previously usedgiven us a form 64-8 to‘Authorising authorise your agent,agent’, we’ll deal directly with the agent named on that form unless you tell us not to.

  If you would like to appoint a new advisor,adviser, complete Tax agents and advisors:advisers: temporary authorisation to allow HMRC to deal with your tax advisoradviser (COMP1) and send it to HMRC with theyour completed Outline Disclosure.

  The Contractual Disclosure form.Facility offer and how it works

  The Code of Practice 9 (COP9) explains how the Contractual Disclosure Facility works. It tells you in detail what HMRC will do when it suspects someone of committing tax fraud. It explains what it means for you and what your rights are.

  Completing

  If this does not answer your questions, you can contact HMRC by email at centre.cop9@hmrc.gov.uk. You’ll get a response within 7 days.

  The helpdesk will:

  • answer technical questions about the OutlineContractual Disclosure Facility
  • explain what specific things mean, for example, if you do not understand part of one of the letters HMRC has sent you

  The helpdesk cannot:

  • answer questions about your own case, or anyone else’s
  • give advice about examples or pretend situations (hypothetical questions)
  • answer questions about any other area of tax or benefit that is administered by HMRC

  You can find more detailed guidance in the Fraud civil investigation manual.

  Completing the outline disclosure form

  If the completion instructions in part 4 and 4a of the Outlineoutline Disclosuredisclosure form do not answer your question, you can contact HMRC by email at centre.cop9@hmrc.gov.uk. YouYou’ll will get a response within 7 days.

  Where to send the Outlineoutline Disclosuredisclosure form and acceptance letter

  Send theyour completed Outlineoutline Disclosuredisclosure form and acceptance letter to the address shown on our original letter to you.

  If you cannot find this letter,letter then send them to the following address:

  HM Revenue and Customs
  Fraud Investigation Service
  COP9 Centre
  S1725
  Newcastle
  NE98 1ZZ
  

  HMRCMaking response to your Outline Disclosure form and acceptance letter

  HMRC will let you know we’ve received your Outline Disclosure form and then review the content, which can take some time. We will contact you once the review is complete to let you know whether or not it is accepted.

  If you’re concerned about the length of time it is taking to respond, email: centre.cop9@hmrc.gov.uk. You will get a response within 7 days.

  Make a payment on account

  We charge interest on tax and duty that is paid late. We charge it from the date the tax or duty should have been paid to the date that it is paid. To save you paying more interest than necessary, we expectrecommend you pay any amount you think you may owe from the details you include in theyour Outlineoutline Disclosure form.disclosure.

  TheseWe paymentscall aresuch calledpayments ‘payments on account’. Making a payment on account will stop the interest increasing on the amount of tax and duty you owe. We see this as a demonstration of your willingness to reach a settlement.

  If payment information and the reference number is not shown in our letter, email: centre.cop9@hmrc.gov.uk. You will get a response within 7 days.

  Help and advice

  If you cannotcan findcontact theHMRC answersby youemail needat in the Code of Practice 9 (COP9) email: centre.cop9@hmrc.gov.uk. Youfor willthis information. You’ll get a response within 7 days.

  The

  HMRC helpdeskresponse will:

  • answerto technicalyour questionsoutline aboutdisclosure theand Contractual Disclosure Facility
  • explain whatacceptance specificletter

  HMRC thingswill mean,acknowledge forreceipt example,of ifyour yououtline dodisclosure notand understandthen partreview ofthe onecontent, ofwhich thecan letterstake HMRCsome hastime. sentWe will contact you

The helpdeskonce cannot:

• answerthe questionsreview aboutis yourcomplete ownto case,let oryou anyoneknow else’s
• givewhether adviceor aboutnot examplesyour oroutline pretenddisclosure situationsis (hypotheticalaccepted.

  If questions)

• answeryou’re questionsconcerned about anythe otherlength area of taxtime orit benefitis thattaking isto administeredrespond, byyou can contact HMRC

You canby findemail moreat detailedcentre.cop9@hmrc.gov.uk guidancewith inyour theconcerns Fraudand civilyou’ll investigationget manual.a response within 7 days.