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Change to Code of Practice 9

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HMRC has updated COP 9, replacing the November 2012 version. Under a COP 9, HMRC offers a taxpayer it suspects of ‘deliberate conduct’ (previously referred to as fraud) the chance to make a full disclosure under a contractual arrangement called a contractual disclosure facility (CDF). The taxpayer will then have 60 days to respond. If a full disclosure is made, HMRC will not pursue a criminal investigation. Furthermore, full cooperation may lead to a lower level of civil sanctions. Changes to the guidance include a revised description of the contractual disclosure facility process to ‘accept’ or ‘reject’, rather than ‘accept’, ‘deny’ or ‘deny with cooperation’, effectively removing the ‘deny with cooperation option’. The term ‘deliberate conduct’ replaces ‘fraud’. Appendix 1 containing the decision tree flowchart has been removed.