TTOG4190 | Investigation work: opening under Code 8: progress of cases

If there is no disclosure in a Code 8 case, the Investigator must consider the way forward.

If it is accepted that the explanations given are satisfactory and additional tax is not due the case must be settled without delay and the taxpayers’ advisers informed accordingly.

Where no disclosure has been made or where the Investigator suspects that there has only been a partial disclosure, the case will require to be investigated.

The aim is to develop the case to the stage where:

• it can either be accepted that no further tax is due, or

• a further approach can be made to the taxpayer and the results of our further research put to him/her with a view to negotiating a settlement, or

• matters can be pursued through the assessment, appeal and review process, with a hearing before the First-tier Tribunal if necessary.

In taking the case forward it is still appropriate to ask the taxpayer to voluntarily produce information or documents. In other instances it may be appropriate to ask for a mandate to approach a third party. In the event that the co-operation is not forthcoming, then the use of formal powers should be considered.