HMRC: Fraud Investigation Service

1. HMRC: Fraud Investigation Service What is the role of FIS? The HMRC Fraud investigation Service (FIS) is an elite group of tax investigators established in 2015 from two existing teams, the Criminal Investigations Unit and the Special Investigations Unit. FIS is regarded as a select team due to their expertise, skill and experience. They are tasked with investigating cases of suspected serious and high value tax fraud and avoidance, both in UK and offshore. How does FIS operate? The group investigates serious cases of criminal and civil tax evasion and tax fraud, and recently have expanded their operations in relation to civil cases. Proposals have been made that would allow HMRC to access taxpayer’s information from external parties such as banks and accountancy firms. Civil investigations generally take place under Code of Practice 8 (COPD8) or Code of Practice 9 (COPD9).

2. In cases where serious tax fraud or tax evasion is suspected, and a large amount of tax is involved, this is likely to be considered as Code of Practice 9. This Code of Practice is sent to the individuals to inform them of a pending investigation, but it also covers the companies with which the individual has been involved in the past. Meanwhile, Code of Practice 8 may be used for investigations where initially with no suspicion of fraud, but if the situation changed, Code of Practice 9 should apply. It is important that you understand the potential implications of investigations by the FIS, and seek assistance from professionals with prior experience related to this topic. Cheylesmore Accountants can give you advice and guidance in the HMRC Fraud Investigation Service. Our experienced accountants are available to provide you with whatever advice and support you need.