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Where HMRC suspects that fraud has occurred it may commence an investigation into the taxpayer under Code of Practice 9 (COP 9 or Code 9). The commentary below considers a COP 9 investigation. For details of the investigation that may be started into tax avoidance where fraud is not suspected, see A7.422.

There is no statutory definition of 'tax fraud' and it therefore takes its ordinary meaning of deliberate deception, dishonesty, trickery or cheating, that leads or is intended to lead to a loss of tax to the Exchequer. Deliberate behaviour is required; it is not possible to commit fraud by accident. It expressly covers behaviour that might be prosecuted as cheating the public revenue, a statutory offence of fraudulent evasion of tax or an offence of fraud. ¹.

For a discussion of the occasions on which COP 9 is likely to apply, and the step involved, see the article 'Reveal the truth' by Matthew Watkins in Taxation, 16 February 2023, 14. Although this article pre-dates the latest