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Any tax investigation or disclosure is sensitive and complex. Advice from our multi-award-winning, specialist team will help your client navigate through the Contractual Disclosure Facility (CDF) process and achieve a positive outcome.
Every case is unique, sometimes requiring a robust stance to be taken with HMRC, sometimes needing a practical solution, at other times a discreet discussion. We take time to explain and clarify complex issues so that clients are kept fully informed throughout the CDF process. Our specialists ensure that the right amount of tax, if any, is paid in settlement.
We have an excellent working relationship with HMRC’s fraud investigation teams and meet senior personnel to discuss practice and technical issues.
We are represented on important committees, such as HMRC’s Fraud Forum, the Enquiries and Appeals Committee at the ICAEW and the Chartered Institute of Taxation’s Management of Taxes Sub-committee.
To achieve the best outcomes for our clients, we work closely with other professionals, including accountants, lawyers, fiduciaries and bankers. We can work independently of existing advisors or in a peer capacity.
HMRC prefers to deal with cases of suspected tax fraud through the CDF in accordance with the procedures set out in the department’s Code of Practice 9 booklet.
Under the CDF, taxpayers suspected of tax fraud have 60 days to agree to the facility’s terms and provide an outline disclosure or deny any tax fraud has been committed. If no response is received within the 60-day period, HMRC assumes that the taxpayer has decided not to admit fraud or to co-operate.
The risk of HMRC discovering inadequacies is growing as its data-gathering techniques grow ever more sophisticated. This is evident from the increasing amount of data automatically exchanged cross border between tax authorities, the use of the hugely sophisticated 'Connect' analytical computer system, and deployment of extra investigations staff.
Agreement to the CDF’s terms commits taxpayers to providing a full disclosure within an agreed set period of time. As part of that process, taxpayers may be invited to a meeting with HMRC. HMRC retains the option to conduct a criminal investigation in cases where tax fraud is denied, co-operation breaks down or into matters not included in the disclosure.