HMRC COP9 Initial Meeting

Once HMRC receives the outline disclosure CDF (and is satisfied that all initial concerns have been resolved), as the first step, it will write a letter confirming the COP9 procedure and requesting a meeting. The meeting is to discuss the outline disclosure and collect background information. Although the official Hansard questions have been dealt with, HMRC will attempt to ask similar questions in certain instances. In some cases, HMRC may not require any meeting as the tax fraud is established and is very straightforward to calculate. In that scenario, the taxpayer may immediately agree on the amount owing, receive the relevant documents, arrange payment, and conclude the inquiry.

Though you are free to refuse HMRC’s request for an interview, doing so may be interpreted as a lack of cooperation, which is the most significant factor in the COP9 investigation. The taxpayer may choose not to attend for various reasons, including age, health, or other sensitive issues that may directly or indirectly not relate to the investigation.

Any surprises can be difficult to handle for both the client and the adviser. Therefore the client must be adequately educated and informed of the expected nature and approach that HMRC would take and the detailed and complex nature of the questions it will ask if the client plans to attend the meeting. HMRC interview will be based on your CDF outline disclosure, and they will ask you questions about your business history, current operations, and relationships with any third parties. Now the HMRC has more than one hundred questions requiring the answers to construct the taxpayer’s profile. This profile contains information about the taxpayer’s education, experience, marriage, inheritance, liquid assets in the taxpayer’s name or to which they have access, living style, including houses, vehicles, bank accounts, credit and debit cards, holiday details, expensive articles, and so on. This interview can last for more than 3 hours.

Direct deception and wrong answers expose clients to enormous dangers; thus, they must always tell the truth. If the taxpayer is unclear about what to say in response to a question, it’s best to say nothing and ask for time to provide a written response. HMRC acknowledges that these meetings are stressful and is typically supportive of an individual refraining in response to specific questions, providing this is done correctly. Similarly, tax advisors shouldn’t be afraid to step in during a client’s question or call a “time out” to address concerns. In general, it is preferable to say nothing rather than anything that may lead to regret than to say something that could.