General Disclosures of Fraud

General Disclosures of Fraud

For individuals who wish to declare tax fraud to HMRC, the COP9 process is not the only option. A General Disclosure provides an alternative route that may be more suitable in certain circumstances.

The COP9 Process — A Recap

COP9 is a very intrusive process. It requires the disclosure of comprehensive financial details spanning decades. HMRC will examine every aspect of the individual’s financial history in significant depth. While this thoroughness provides certainty, it is not always proportionate to the nature of the fraud.

The General Disclosure Alternative

A General Disclosure involves writing directly to HMRC, detailing the fraud committed and the amount of tax that has been underpaid. This is a simpler and less invasive process than COP9, and it can be effective in the right circumstances.

When Is a General Disclosure Appropriate?

A General Disclosure is well suited to situations where:

• The tax involved is under £300,000
• Documents have not been altered or fabricated
• The fraud is relatively straightforward in nature

When Is COP9 Recommended?

COP9 is the recommended route when:

• There have been attempts at concealment, such as altering documents or destroying evidence
• The tax involved exceeds £300,000
• The client seeks the enhanced peace of mind that comes from a structured and formally agreed process with HMRC

Choosing the Right Route

The choice between a General Disclosure and COP9 depends on the specific facts of each case. Professional advice is essential to ensure the correct route is taken and the disclosure is handled properly from the outset.