Code of Practice 9 – A practical guide

Key points

• Code of practice 9 (COP9) is used when HMRC suspects – or an individual discloses – that deliberate action or inaction has led to insufficient tax being paid.
• Cases now proceed through the contractual disclosure facility introduced in 2012.
• HMRC’s evasion referral team will decide whether to seek criminal prosecution or civil settlement – if the civil route is followed COP9 is issued.
• COP9 is the only tax disclosure facility which guarantees immunity from criminal prosecution if a full and complete disclosure is made.
• If the taxpayer chooses to reject the opportunity of disclosing COP9 when perhaps their circumstances would indicate this was the wrong decision HMRC will either commence a criminal investigation or investigate the matter themselves.

Many readers will be familiar with HMRC’s code of practice 9 (COP9) process either through their own firsthand experience or from reading explanations of how the...