February 7, 2012

HMRC announce the new Contractual Disclosure Facility

Your sole proprietor and partnership clients might be interested in Customs announcement of the new CDF facility. The new facility became available on 31 January 2012 and all cases of suspected fraud will be treated under these new procedures.

Clients who make a disclosure under the new facility will still benefit from the Code of Practice 9 (COP9) protection from prosecution – provided they show continuous cooperation with HMRC and meet all the new stringent deadlines on time. COP9 has been rewritten for the new CDF procedure.

The new procedures

If your client is suspected of tax fraud, HMRC will send a letter offering the opportunity to disclose the omitted taxes under the CDF. Your client has 60 days in which to agree to the contract and outline their disclosure or deny the fraud. Denial, if proved to be incorrect, may be passed to HMRC’s Criminal Investigation team.

Your clients are advised to seek expert advice from yourselves before they approach HMRC.

The link below takes you to HMRC’s website and the 13 page COP9.

Elysian Associates
February 2012

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