Tax Avoidance Investigations

Tax Avoidance Investigations

Tax avoidance investigations, operated under Code of Practice 8, commence for various reasons. These include where HMRC believes that a taxpayer has used a tax avoidance scheme that has resulted in a significant loss of revenue, or there are particularly complicated issues to resolve. These investigations typically involve complex or technical tax issues that require specialist input. Offshore tax matters often fall under this category, and require careful handling to secure the best possible outcome for the taxpayer.

Investigations usually begin with HMRC requesting a substantial volume of information and records relating to your financial affairs. We strongly recommend seeking advice as soon as the initial letter is received, and, ideally, before a reply, and any information or documents, are sent to HMRC. We will seek to ensure that an appropriate response is provided to HMRC, and that no unnecessary damage is caused. We will consider the extent of the information request from HMRC, and whether it is necessary to provide all the items requested.

Tax avoidance investigations are handled by investigators from HMRC’s Fraud Investigation Service (FIS), or other specialist HMRC units. These cases are outside the scope of HMRC’s local office network, and are dealt with by senior HMRC representatives. As a result, these investigations require a specialist tax adviser to ensure you receive the most up-to-date and informed advice.