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Investigations

Irrespective of the level of controls and checks in place, fraud and error can occur. We work with clients to fully understand the nature and scale of these issues by undertaking forensic internal investigations under legal professional privilege. Where it is deemed appropriate to make a voluntary disclosure, we will advise on the presentation of the factual material identified during the investigation and its impact on the tax technical analysis.

We are increasingly finding that the tax authorities expect a far greater level of enquiry to be undertaken by taxpayers before they will accept the technical analysis advanced in a disclosure.  Coupled with an enforcement landscape of increased penalties, criminal prosecution and loss of approvals and licences, the importance of the investigation phase of a tax dispute cannot be understated.  Our international reach allows us to follow lines of enquiry that arise along globalised supply chains or deal with problems which occur in multiple locations globally.  Our investigation capabilities and experience are therefore at the heart of our ability to minimise the disruption caused by tax fraud and errors.

We regularly undertake the following tax investigation work:

  • UK Code of Practice 8 and Code of Practice 9 enquiries
  • Enquiries into tax avoidance structures
  • Missing Trader Intra Community (MTIC) VAT fraud "knowledge principle" investigations
  • Other supply chain investigations resulting from allegations of tax fraud (e.g. as a result of alcohol fraud or circumvention of Anti-Dumping Duty)
  • Investigations into alleged breaches of export controls and sanctions
  • Tax penalty investigations to determine how and why an error arose
  • Advising on tax authority information and data gathering powers
  • Tax disclosures – previously under amnesty facilities such as the Liechtenstein Disclosure Facility and now under the Worldwide Disclosure Facility
  • FATCA/CRS
  • Residence status and domicile status

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Work Highlights

Precious metals supplier: in response to an HMRC investigation into the connection of its purchases and sales of precious metal with the fraudulent evasion of VAT in its supply chain (MTIC). We carried out an internal investigation to determine whether the business "knew or should have known" of that connection to MTIC.

Work Highlights

Corporate entity: in making disclosures to HMRC of a number of deliberate and careless tax errors under the terms of the Liechtenstein Disclosure Facility (now withdrawn), which gave immunity from prosecution.

Work Highlights

Large construction company: in relation its non-compliance with the VAT self-billing rules, resulting in a potential liability to the company of £180m in denied input VAT. We undertook an in-depth investigation and prepared a detailed voluntary disclosure to HMRC with accompanying submissions on penalties that resulted in HMRC agreeing that the error was technical in nature, the VAT was recoverable and no penalties should be applied.