Code of Practice 8 Tax investigations and enquiries are on the rise
We have seen over the last few years that HMRC have been investing in technology in order to increase the revenue from tax investigations aimed at larger cases. HMRC has invested over £50m in the CONNECT system which consolidates data for individuals. This data can help HMRC in assessing whether a person has undeclared income. HMRC then used various channels to open an enquiry including a standard tax compliance check or for more serious cases such as Code of Practice 8 or COP 8 enquiries. We have noticed that HMRC are able to generate significantly higher tax revenue by using Code of Practice 8 tax enquiry notices.