CH481360 - Managing serious defaulters (MSD) for specific customer groups: FIS (Fraud Investigation Service): general information

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

From 3 December 2012 for cases settled in FIS where a penalty for a deliberate or a deliberate and concealed inaccuracy, failing or wrongdoing has been established and charged, the general guidance for Managing Serious Defaulters (MSD) in the Compliance Handbook applies, see CH480100. For MSD cases involving FIS Insolvencies see CH481370 and for FIS Securities see CH481380.

Additional guidance for cases worked under CDF procedures

Cases worked under Code 9 procedures - Contractual Disclosure Facility (CDF) may, in certain specific circumstances, be referred for monitoring where:

  • no penalty has been charged, or
  • the only penalty position is pre-FA07.

The guidance below should be followed where, in a Code 9 investigation, the caseworker considers monitoring is appropriate.

Post-FA07 cases where no penalty charged

  1. Where FA07 deliberate penalties would be due but are not charged (for example where there are means problems and neither of the conditions at EM5213 applies) the caseworker will decide if the defaulter should or should not be put into the MSD programme.
  2. This will allow the caseworker the opportunity, in these limited circumstances, to place a case into the MSD programme where they consider the defaulter presents an ongoing risk to HMRC.
  3. The caseworker will tell the defaulter at the earliest possible opportunity that they will, because of their actions, be put into the MSD programme.
  4. The consideration of this decision forms part of the manager’s assurance process.
  5. The standard MSD referral process will apply using NPPS.

Pre-FA07 cases

  1. Where the penalty position relates only to pre-FA07 periods, the caseworker will decide if the defaulter should or should not be put into the MSD programme.
  2. This will allow the caseworker to not put into MSD inappropriate cases where a pre-FA07 penalty has been taken - that is, those at the very bottom end of the neglect spectrum.
  3. This will allow the serious defaulter from whom a pre-FA07 penalty has not been taken to still be put into the MSD programme when the caseworker recognises that the defaulter presents an ongoing risk to HMRC.
  4. The caseworker will tell the defaulter at the earliest possible opportunity that they will, because of their actions, be put into the MSD programme.
  5. The consideration of this decision forms part of the manager’s assurance process.
  6. The standard MSD referral process will apply using NPPS

Representation Process

  1. Any subsequent representation against inclusion will be sent back to the caseworker who will revisit the case and confirm or revise the decision to enter the case into MSD.
  2. The manager will review and countersign the caseworker’s reconsideration.
  3. The manager’s decision will then be sent to the Appeals and Reviews team who will carry out the final review and make the final decision.

A link to the MSD intranet page will be available from this page in due course.