Contractual disclosure facility CDF

  • HMRC has offered a contractual disclosure facility CDF from 31 January 2012.
  • If HMRC writes to an individual about a suspected tax fraud they will be offered the CDF.
  • CDF can also be used by anyone who wishes to own up to tax fraud.
  • CDF is only used for tax fraud: it does not apply to errors, mistakes or avoidance schemes.

If HMRC writes to a taxpayer because tax fraud is suspected and intends to investigate using Code of Practice 9, a CDF contract will be offered.

Under CDF there are 3 options:

  • Owning up to fraud: the CDF route
  • Deciding not to own up to fraud: the denial route
  • Not replying to HMRC: the non-cooperation route

Under COP 9 HMRC will refrain from criminal investigation and prosecution provided that the individual makes a full disclosure. CDF ties together the disclosure process.

To use the CDF the individual must:

  • Make a full and formal disclosure to HMRC within 60 days.
  • Sign a statement to say that you have provided accurate and complete details of the tax fraud
  • Pay all taxes, duties, interest and penalties due
  • Stop any fraud immediately

HMRC guidance:

HMRC Code of Practice 9 (COP9) investigation of fraud  

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