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HMRC ramps up tax investigations

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HMRC opened more than 1,000 COP8 and COP9 investigations in the year to 31 March 2023, reports Pinsent Masons, with some 3,300 investigations in progress, in total. The 417 new COP9 investigations into the most serious suspected tax evasion cases, and 674 COP8 civil investigations into tax avoidance, show an increasing focus within HMRC on tackling major tax avoidance and evasion, suggests the firm.

The crackdown is illustrated by a number of high-profile cases taken by HMRC, including the COP9 investigation into former Formula 1 boss Bernie Ecclestone’s tax affairs which resulted in a £650m fine.

Sophie Warren, Tax Manager at Pinsent Masons, said: ‘The number of serious tax investigations opened by HMRC demonstrates the extent of HMRC’s crackdown on the most serious tax evasion and avoidance. The Bernie Ecclestone case was a great example of the kind of major tax fraud HMRC is now targeting.

‘A COP8 or COP9 investigation represents the “last chance saloon” for people who have been involved in fraudulent evasion of tax or have partaken in tax avoidance schemes. It’s the final opportunity to come clean to HMRC. If they don’t, the scale of the penalties can be eye-watering – hundreds of millions in fines or even years in prison’, she added.

Issue: 1649
Categories: News
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