Fraud Investigations

Understanding the Contractual Disclosure Facility (CDF)

When HMRC suspects tax fraud, they will invite the taxpayer to participate in the CDF. The taxpayer has 60 days to decide whether to admit fraud, and submit an outline disclosure detailing the extent of the fraud, or deny their involvement in fraud.

By accepting that there has been fraudulent behaviour, and cooperating with the process, taxpayers will receive immunity from a criminal investigation by HMRC. However, failing to respond, denying fraud, or choosing not to cooperate may result in a criminal investigation, or, at the very least, significantly higher penalties than would otherwise be the case

The Risks of a Fraud Investigation

Fraud investigations are conducted by HMRC’s specialist investigators from their Fraud Investigation Service, who have extensive powers to enforce compliance. Not all suspected fraud cases are handled under the CDF; in some instances, HMRC may immediately initiate a criminal investigation without offering the taxpayer the option to enter the CDF.

Given the complexities and potential consequences of a fraud investigation, obtaining specialist advice is essential. Failure to follow the process can lead to severe financial and, potentially, legal repercussions.

The process is fraught with dangers, and specialist advice is essential.

If you have been contacted by HMRC regarding a fraud investigation, seeking expert advice as soon as possible is crucial. Berwick Tax provides:

• Complete assistance throughout the investigation process
• Specialist advice on how to navigate the CDF
• Support in minimising penalties and achieving the best possible outcome

At Berwick Tax, we focus on our clients’ needs, ensuring each case is handled with the highest level of expertise and discretion.

Contact us today to discuss your situation and find out how we can help you navigate an HMRC fraud investigation effectively, and reduce the likelihood of being subject to a criminal investigation by HMRC.