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Facing Criminal Investigation

Facing a tax investigation? Need to make a disclosure to HMRC? Don’t worry. One of our team will be able to help. Just get in touch.

HMRC Criminal Investigations

HM Revenue & Customs (HMRC) pursue criminal investigations as part of its overall enforcement strategy.  A criminal investigation is launched by HMRC where it  believes that it is in the public interest to prosecute a taxpayer.  This may be in tandem with a prosecution by another agency, eg the Police.

Such investigations are conducted by HMRC’s Fraud Investigation Service (FIS) and could be initiated by sub-departments within FIS, such as the Criminal Taxes Unit or Proceeds of Crime Unit depending on the nature of the perceived offence.

When is it used?

The most cost effective way for HMRC to deal with suspected tax fraud is on a civil basis under the Contractual Disclosure Facility (CDF) procedures and Code of Practice 9.

A criminal investigation is reserved only for cases where HMRC wants to send a strong deterrent message or where the conduct involved is such that only a criminal sanction is appropriate.

Examples include:

  • where there has been a conspiracy to conduct a systematic fraud
  • where the individual concerned holds a position of trust or responsibility
  • where false or forged documents have been used
  • where systematic attacks on the collection of tax have taken place
  • where matters involve advisors, accountants, solicitors and others that have acted in a professional capacity

How we can help

Anyone faced with a HMRC criminal investigation requires skilled legal representation in the first instance.

Once legally represented, we can work with the taxpayer and their legal advisors to build the defence to the alleged offence.

We are regularly instructed to provide Expert Witness Reports in respect of proceedings, including confiscation proceedings.

We meet with HMRC Experts to negotiate and agree approaches to tax liabilities where they exist and if required to do so to present evidence in Court.

Optimum Outcome

The optimum outcome to prosecution proceedings is that they are dropped, with no further action.  This is rare but it can happen.

The next best outcome is that HMRC cease criminal proceedings and carry on matters on a civil footing, a quasi Code of Practice 9 investigation, again rare but it is possible.

Not being subject to criminal proceedings in the first place is preferable above all other options.

If there are deliberate tax failings and the taxpayer acknowledges the inaccuracies, they can avoid prosecution by seeking a Contractual Disclosure Facility (CDF) agreement from HMRC to disclose and remedy the failings.  The CDF agreement provides an immunity from prosecution for the offences disclosed to HMRC.

 

 

If you cannot find the information you need on our website, please contact Andy Maxfield using our contact form or email directly to amaxfield@hwca.com

Get in touch

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Birmingham

Sterling House
71 Francis Road
Edgbaston
Birmingham
B16 8SP

Leeds

Sterling House
1 Sheepscar Court
Meanwood Road
Leeds
LS7 2BB

London

New Derwent House
69 – 73 Theobalds Road
London
WC1X 8TA

Our addresses

Birmingham

Sterling House
71 Francis Road
Edgbaston
Birmingham
B16 8SP

Tel: 0121 456 1613

Leeds

Sterling House
1 Sheepscar Court
Meanwood Road
Leeds
LS7 2BB

Tel: 0113 3981100

London

New Derwent House
69 – 73 Theobalds Road
London
WC1X 8TA

Tel: 0207 025 4650