How long do investigations go on for?

[JJ84]

Hi everyone,

Quite a while ago (more than 4 and a half years and counting) I found some startling open source info on the net about certain companies (quite a few of them actually) operating in the industry I work in (sorry I can't be any more revealing than that but I could be on the hook if I said much more).

I reported this information which appeared to indicate that there was very large tax evasion occurring and I received a phone call 6 weeks later, probably from a member of a FIS team in Cardiff - he asked me for more info, which I provided a few weeks later, and he assured me they were going to act on it.

Given the potential scale of this suspected fraud (industry-wide), I expected not to hear anything for a while, but how long does it take for HMRC to get people to account for their criminality? Not a single person or business in this particular industry has appeared on the tax defaulters list (£25k is peanuts compared to what some are likely to owe) since then. I doubt there has ever been any compliance work carried out on businesses within this industry, as the contact made it clear that his colleagues were stunned by what they had uncovered.

Can very complex investigations take 5 years, 10 years or more?

I would appreciate any thoughts.

Regards,

JJ.

[wamstax]

How long is a piece of string? You could ask the same question and get varying responses. It is impossible to say as some enquiries can be settled within 6 months to a year while others can trundle on for up to (and occassionally beyond) 10 years.

Into the bargain there is no guarantee that any individual (or other entity) will appear on the Deliberate Defaulter's List. This is potentially possible when a person that has committed fraud or deliberately comes to a COP9 specialist like myself and then follows the suggested strategy of complying with any Contractual Disclosure in making a full disclosure and cooperating with HMRC in getting the enquiry/investigation resolved effectively.

Go on let's know what they are doing in what industry?

You can of course chat to me if you have a HMRC disclsoure to make of you have received the offer of a COP9 contract with HMRC on my 24/7 mobile - 07751720507.

[JJ84]

Thanks for the reply. It gives some sense of reassurance at least, that things could still be in the pipeline.

In terms of offenders not being on the defaulters list, I'd be surprised if most of them haven't assumed the position of an ostrich. I've seen some odd filings made by some directors of reported companies over the last four years or so - wives resign as directors (quite a few of these), directors setting up new companies that then control the first company, then resigning from all companies, accountants jumping ship, as well as the usual attempts at folding the business (which is usually followed by a suspension filing - HMRC?). But then some companies are continuing as if it is business as usual!

Do HMRC round up the small fry first, or is it not that simple? I've read they issue information notices to any third party they think might provide evidence, presumably this includes accountants?

I understand HMRC can't provide updates on investigations for obvious reasons, but there's no real consideration of the effect that such behaviour has on people who are straight and expect to work in an industry that isn't as bent as hell. When they say, 'Tax evasion isn't a victimless crime', you are damn right it isn't! It is often part of wider criminality and abuse of other people. I've been massively affected by the things directed at me, but refuse to not go through with this - I know other people who have been shafted, and those that are prepared to abuse the system need to be removed from it.

As for what they are doing, well I'll put it this way - there is a website that posts the turnovers of companies (globally), and when I saw what some of these turnovers were, I nearly fell off my chair. If you saw Grant Thornton had posted a turnover of £75m instead of the £750m it is actually doing (posting 10 or 20% of their turnover seems to be a favourite figure to ensure never paying tax!), you would want something doing about it, especially if you were trying to compete for contracts.

Factor in that some of the industry involves state-owned assets and contracts, if the government doesn't act, they are effectively breaching fair compeition laws as part of the Procurement Act, etc. HMRC bang on about creating a level playing field, but all I see at the moment is the north face of the Eiger!

Regards, JJ.