Following various changes over the last few years HMRC has settled upon a new process for Hansard Investigations.  Code of Practice 9 has been updated to deal with the new process called the Civil Investigation of Fraud (“CIF”).  CIF enquiries will cover VAT as well as direct taxes.

The new code explicitly states that there will be no prosecution in respect of the tax included within a CIF investigation.  However where HMRC are not provided with a full disclosure, or are materially misled they reserve the right to prosecute.

The process will apply to all new COP 9 cases opened by SCI.

In a very significant change 12 CIF offices are also being opened throughout the country.  These offices are still part of the local network, but are also authorised to use the Civil Investigation of Fraud procedures.  The offices will be managed by experienced investigators and will work their cases in an identical manner to SCI.  Consequently any correspondence from such an office should be treated identically to one from SCI.

Deloitte have a track record of helping clients minimise the effect of such enquiries.  We have the right combination of skills and experience for success.  Our approach has enabled many clients, from major multinationals through family owned businesses to high net worth individuals to minimise the potential effects of an enquiry.  Our secret is to focus clearly on you and your business, whether we have had an ongoing relationship or not.