fbpx

EBTs and Code of Practice 9

Author

Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.

EBTs and Code of Practice 9

We are aware that HMRC has recently started to issue Code of Practice 9 (COP9) investigation letters to participants in certain Employee Benefit Trust or EBTs.

This means that HMRC may suspect clients of fraud, which can include them having deliberately concealed or withheld relevant facts or having misrepresented their tax affairs in some way.

HMRC is offering participants an opportunity to make a full disclosure of all errors in their tax affairs (i.e. not just those relating to the use of the scheme). In return, HMRC will agree not to begin a criminal investigation. If a full disclosure is made, a civil settlement will be agreed.

If clients receive such a letter, they only have 60 days to respond to HMRC’s offer. If they don’t, HMRC could start a criminal investigation.

Clients need to carefully consider and explore all relevant factors before any documents are signed and returned to HMRC.

If you or your clients have any concerns about EBTs and Code of Practice 9 then please get in touch.

 

Comments are closed.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close