A new “amnesty” facility by HMRC to tackle suspected tax fraud using civil powers has been welcomed by the Chartered Institute of Taxation (CIOT).
Under the Contractual Disclosure Facility (CDF), which will start on 31 January, HMRC will offer some people suspected of tax fraud the opportunity to disclose that fraud in exchange for a guarantee that they will not face criminal prosecution.
HMRC will write to a taxpayer to inform them that they are suspected of serious tax fraud and offer them the opportunity to enter into a contract to disclose that fraud within 60 days.
In return for people coming clean about money owed, HMRC will agree not to make a criminal prosecution. Instead the taxpayer will typically pay a financial penalty, plus interest and tax owed.