Managing Deliberate Defaulters
When an individual, partnership or company deliberately pays the wrong amount of tax or no tax at all, they are termed by HM Revenue & Customs (HMRC) as ‘deliberate defaulters’.
The Managing Deliberate Defaulters (MDD) programme was started by HMRC in 22 February 2011 in order to tackle tax evasion by monitoring the tax affairs of deliberate defaulters. Such defaulters will be monitored for a period of between 2 to 5 years and the extent of HMRC’s checks will depend on the seriousness of the tax evasion. Once placed on the programme, HMRC will be able to:
- make unannounced visits to the place of business of the defaulter and carry out inspections on business books and records
- request that additional information and documents are included with the defaulter’s tax returns
- conduct in-depth compliance checks into all parts of the defaulter’s tax affairs
- observe and record business activities of the defaulter such as by making test purchases or by inspecting the records of business suppliers and customers.
HMRC may also monitor any new business started by the defaulter. Furthermore, if a defaulter is placed on the MDD programme and they continue to evade tax, HMRC may take criminal proceedings against the defaulter.
Why should you contact us?
We have a dedicated team of former tax inspectors who have a significant amount of experience in handling civil investigations of fraud cases. We can assist in drafting the disclosure report quantifying tax risks and negotiating with HM Revenue & Customs.
Our specialist team can offer immediate support with a confidential free initial consultation.
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Call our helpline 020 7842 7200 for a free no obligation discussion or email investigations@crowecw.co.uk. Alternatively, please complete our enquiry form and one of our team will contact you.