HMRC undertakes a Criminal Investigation. They suspect serious tax fraud has occurred and decide to investigate with a view to prosecution rather than a civil basis to secure the tax.

If a case is investigated criminally rather than civilly, the burden of proof shifts from the defendant to the prosecution.  This means that you are not considered guilty of the tax fraud unless HMRC can prove it. This is different to cases that are investigated civilly (i.e. COP8 or COP9), where the starting point can be that any cash deposits are considered taxable receipts unless you can prove otherwise.

If HMRC is bringing criminal proceedings against you or your client, it means that they consider they have irrefutable proof that the fraud has occurred.

HMRC may also be proceeding on a criminal basis due to any deemed lack of co-operation with the COP9 investigation or because they have identified something demonstrably fraudulent during a COP8 investigation.

Regardless of the reason, if you or your client have received a notice from HMRC stating that they are commencing criminal proceedings (or you think that they may do so soon), you must act immediately to protect yourself.

We would strongly suggest speaking to a professional who can advise on any tax matters and work alongside a criminal defence lawyer to ensure that you are roundly protected.

Expert advice at the earliest possible time will ensure that HMRC does not obtain the information they are not entitled to, that you adhere to all relevant deadlines and that any opportunities to get the case treated on a civil basis are adequately explored and secured as appropriate.

Why have I received this notice?

Before commencing criminal proceedings, HMRC will have undertaken substantial work to verify the data that they hold. HMRC will believe that there has been an underpayment of tax and that this underpayment has been deliberately and fraudulently manufactured.

As tax evasion is a criminal offence, Cheating the Public Revenue carries a maximum prison sentence of life.

How Cheylesmore can help you with Criminal investigations

At Cheylesmore Chartered Accountants, our tax investigation specialists are industry-acclaimed. We are named a Leading Firm in Coventry. We are well versed in smoothly managing communications with HMRC to ensure that our client’s interests are protected.