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Civil Investigation of Fraud
HM Revenue & Customs (HMRC) believes that over 1.5 million individuals and some 300,000 businesses are not paying the correct amount of tax due to fraud, evasion and/or criminal attack. Criminal investigations are resource intensive, expensive and time consuming so HMRC's priority in recent years has been to tackle tax fraud (or non-compliance (including the hidden economy)) by way of civil investigations and various disclosure facilities and campaigns.
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What is the Civil Investigation of Fraud procedure?
The Civil Investigation of Fraud (CIF) procedure was introduced in September 2005 to allow HMRC to consistently handle both direct tax and indirect tax cases involving suspected serious fraud. The aim of the CIF procedure is to investigate serious tax, VAT and/or duty fraud and punish evaders by imposing potentially significant financial penalties. It is an important weapon in HMRC's armoury for tackling fraud and improving tax compliance.
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Who are Civil Investigation of Fraud Teams?
The CIF procedure was initially only used by Specialist Investigations (SI) (formerly Special Civil Investigations directorate). However, in order to increase its attack on serious tax fraud, HMRC formed new CIF teams in its Local Compliance and National Compliance directorates.
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When did the CIF teams become operational?
The new CIF teams have been operational since July 2006.
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Where are they based?
CIF teams currently operate from offices in London, Nottingham, Wolverhampton, Bristol, Stockport, Southampton, Leeds, Belfast, Cardiff, Glasgow and Edinburgh. National Compliance has a CIF capability within the Labour Providers Unit and in the Special Trade Investigation Unit.
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What is the difference between the SI Fraud and Avoidance teams and these operational CIF teams?
SI will typically investigate the largest cases or other cases where their particular expertise can add value. The operational CIF teams will deal with those suspected fraud cases not being investigated by SI. HMRC has pledged to only use CIF procedures in cases where it believes it will '... provide a meaningful intervention to fraud ...'.
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Do CIF teams apply different procedures to SI?
No, they should not. All cases should be quality assured and all CIF staff are trained before they are authorised to use the CIF procedures. The aim is to provide consistency across the CIF teams and SI both in terms of the number and suitability of cases taken on and the quality of the subsequent investigation.
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Does that mean HMRC will be applying CIF procedures to more cases and/or a wider range of cases than before?
Yes. HMRC's intention is to take on a greater number of cases under the CIF procedure.
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What should I do if CIF investigate me?
The CIF procedure is only typically used where HMRC suspects that significant amounts of tax are either at risk or might be (or have been) lost/unpaid. Cases are carefully reviewed for investigation under the CIF procedure and the seriousness of a CIF investigation should not be under-estimated. You need expert, specialist help to best protect you and your business interests.
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How can OneE TDI help?
At the core of OneE TDI is a highly experienced team specialising in all areas of tax disputes and investigations work. We are former HMRC SI inspectors/investigators – so we know how SI/CIF thinks! We are constantly dealing with SI/CIF inspectors/investigators so we have up to date insights into current SI/CIF practice and policy.
We offer confidential, non-judgemental advice to best defend our clients and have a proven track record in successfully managing all contentious tax matters. We provide a comprehensive service to accountancy and legal practitioners and their clients. Our advice saves our clients time and money and helps reduce their potential exposure to tax, interest and penalties.
Putting it simply, we take control of and manage all parts of a SI/CIF investigation so that our clients can get on with their life and their business. What price peace of mind?
Please see the Testimonials kindly provided by our clients (or their accountants or lawyers), which confirm our levels of client service.
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How can I contact OneE TDI?
If you would like a free, no obligation discussion with us please contact either Gary Rowson or Mark Taylor on 0800 652 6156 or complete and submit the online form below.
Whilst we endeavour to provide informative and accurate information, the content on this site is for general information purposes only and should not be taken to constitute tax or legal advice which must always be tailored to individual circumstances. Please contact us if you would like to discuss matters.
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Civil Investigation of Fraud