TTOG3420 - Code of Practice 8 cases: identification of Code 8 cases: a Code 8 case can become a CDF (Code 9) case

If the case has been properly reviewed at the registration stage, it will be necessary for new information or facts to have been established to justify withdrawing Code 8 and issuing Code 9 (CDF) or pursuing it with a view to criminal prosecution. Such action may be contemplated as a result of:

• something new being discovered about the taxpayer’s affairs
• when documents are obtained an arrangement which may initially have appeared to have been a matter of avoidance or technical argument may in fact be more indicative of fraud
• the taxpayer may be suspected of being untruthful during your enquiry. For example, the taxpayer declares that he/she has no beneficial interest in an offshore company and the Investigator has evidence that sheds doubt on that response. This must be considered as suspected serious fraud.

In such situations the Team Leader’s authority must be obtained before any change is implemented. A full audit trail, including notes of all discussions etc, must be maintained in order to demonstrate the reasoning behind any decision to refer a case to Criminal Investigations for advice or to recategorise the case as CDF (Code 9).