Contractual Disclosure Facility (CDF) and Code of Practice 9 (COP9)
COP9 is the civil investigation of fraud procedure that gives immunity from prosecution for deliberate understatements. Our experts can help you meet your obligations.
The Contractual Disclosure Facility is complex, but highly beneficial for those potentially facing prosecution.
Co-operation with the CDF process is vital to resolve historic failings without a criminal conviction.
You must seek expert advice immediately if you receive an invitation to use the CDF. There is a strict 60-day deadline to make a valid outline disclosure, or to discuss denial of any wrong-doing and rejection of the CDF.
Admitting there have been deliberate understatements opens up to 20 tax years, but avoids a criminal conviction.
If you reject the CDF offer or if you simply ignore it, HMRC will undertake its own investigation and may build a criminal case with a view to prosecuting you.
The benefits of co-operation and good advice
- You will be asked to meet with HMRC at the beginning and end of the process, but HMRC will liaise with your expert advisor in relation to the disclosure report.
- We can ensure monetary penalties are kept as low as possible.
- We can help you avoid ‘naming and shaming’.
- We will ensure the investigation is concluded without delay and that you are treated fairly.
- All historic matters will be settled by a monetary contract settlement.
If you do not co-operate fully and/or receive poor advice
- HMRC will take over the investigation.
- HMRC could seek to prosecute you for not complying with the CDF terms.
- Third party information notices might be sent to your banks, which could damage to your reputation.
- Penalties will be higher.
- You risk being publicly 'named and shamed'.
- The process will take much longer.
- You will be asked to meet with HMRC at the beginning and end of the process, but HMRC will liaise with your expert advisor in relation to the disclosure report.
- We can ensure monetary penalties are kept as low as possible.
- We can help you avoid ‘naming and shaming’.
- We will ensure the investigation is concluded without delay and that you are treated fairly.
- All historic matters will be settled by a monetary contract settlement.
- HMRC will take over the investigation.
- HMRC could seek to prosecute you for not complying with the CDF terms.
- Third party information notices might be sent to your banks, which could damage to your reputation.
- Penalties will be higher.
- You risk being publicly 'named and shamed'.
- The process will take much longer.
Under the CDF, you will be asked to make a full disclosure of all deliberate and non-deliberate errors in your tax affairs. HMRC will not seek to prosecute you if you make an accurate and complete disclosure.
Accusations of tax fraud are serious and specialist advice must be taken to meet the conditions, otherwise you risk prosecution.
You do not need to wait for HMRC to act: you can make a voluntary request to use the CDF if you need protection from prosecution.
| If you believe that a loss of tax has not been brought about deliberately, you must not accept the offer of the CDF as a matter of convenience. In these circumstances, you should reject the offer. HMRC will then start its own investigation, reserving the right to pursue a criminal investigation. Although the 'co-operative denial' route is no longer available, we can help you frame your response in such a way that will encourage HMRC to work with us to resolve any perceived issues. |
How we can help
Any tax investigation or disclosure is sensitive and requires careful handling.
The tone of correspondence can be intimidating and dealing with HMRC can be very stressful. However, you will avoid being prosecuted for tax fraud if you meet your obligations under the CDF and make a full and frank disclosure.
Crowe’s experienced and award-winning Tax Resolutions team can help you navigate the CDF process and ensure you meet your obligations.
We frequently work with other accountants and solicitors to help their clients who are invited to use the CDF and can work alongside existing advisors in a consultancy capacity.
You can email or complete our booking form to arrange a free confidential consultation.
Book a free consultation
We are professional advisors who specialise in helping our clients with HMRC Disputes, Investigations and Disclosures.
If you would prefer to speak to us, please call our free confidential helpline +44 (0)800 656 9900.
We're here to help
Anyone with tax irregularities that have been deliberately brought about should seek specialist help as a matter of priority. In these circumstances, the CDF (or Code of Practice 9) is a good place to be, compared to the alternative!
Our experienced and award-winning Tax Resolutions team can help you navigate the CDF process and ensure you meet your obligations.
