Code of Practice 8 – Fraud and Bespoke Avoidance

Code of Practice 8 investigations can be slightly confusing. HMRC’s fraud investigation team act under this code, but oftentimes their investigations do not relate to criminal accusations of fraud. Instead, an investigation under COP8 will often by instigated by an individual exploiting any loopholes that allow for tax avoidance, such as the use of a number of complex offshore accountancy practices and umbrella companies.

The primary intention of COP8 Tax investigations is a recovery attempt tax that may be owed, but if concerning inaccuracies or inconsistencies are found they could lead to criminal prosecution. As a result, any instigation of a COP8 Tax investigation should be referred to a professional as soon as possible. Always remember, HMRC are not concerned with what you do or do not know, or what your intention was. Any kind of inaccurate reporting will be considered to be a deliberate and willful attempt to defraud the government.

Code of Practice 8 investigations is usually brought against a company that primarily operated from the UK but has divisions all over the world, and is attempting to report and pay all tax through a lower-cost destination. Technically this is legal (hence tax avoidance, as opposed to tax evasion), but any kind of inconsistency can lead to prosecution and recovery of any assets of finances owed to HMRC.

Alternatively, an individual could be investigated under Code of Practice 8 if they are officially a resident of the UK, but due to business travel commitments have registered as a tax resident in another territory. If an investigation under the Code of Practice 8 is initiated, the individual in question will need to provide many years of travel documentation, bank statements, credit card bills, and various other documentation. This can be a worrying and time-consuming process, which is another reason why it is highly advisable to seek professional assistance – preferably prior to facing investigation.

Criminal investigations

HMRC has always taken a dim view of tax evasion, but now it is increasingly likely that any accusation of such as practice will result in an investigation

specialist investigation

If you should receive a letter from HMRC’s Specialist Investigations division, you should take this very seriously indeed and seek professional advice immediately.

proceeds of crime act

Proceeds of Crime Act relates to Revenue Functions. The purpose is to permit the confiscation of any financial or material gain from the committing of a crime

code of practice 8

COP8 investigations can be slightly confusing. HMRC’s fraud investigation  act under this code, may not relate to criminal accusations of fraud

code of practice 9

Any investigations that are instigated under Code of Practice 9 will result in a criminal accusation and must be taken extremely seriously.