Enquiries by the Inland Revenue Special Compliance Office are sometimes conducted under what is known as the Hansard procedure. This happens either under direction from the Inland Revenue or by invitation having been negotiated by a specialist adviser The procedure affords an opportunity to individuals, businesses and companies alike and allows disclosures of tax irregularities to be made with 100% guarantee of immunity from prosecution for tax offences provided that a full and accurate disclosure of any and all irregularities is made to the best of the individual(s)' knowledge and belief.
The Inland Revenue will flag its intention to go down this route by the issue Code of Practice 9, which relates to cases of suspected serious fraud. The Inland Revenue will generally not go down this route lightly and will usually only do so when they are in possession of solid and reliable information.
The immunity from prosecution in respect of tax related offences is enshrined in the so called Hansard statement, which is reproduced below. In reply to a Parliamentary Question the Chancellor gave the following answer regarding serious tax fraud:
"The practice of the Board of Inland Revenue in cases of suspected serious tax fraud is as follows:
The Board reserves complete discretion to pursue prosecutions in the circumstances it considers appropriate. Where serious tax fraud has been committed, the Board may accept a money settlement instead of pursuing a criminal prosecution.
The Board will accept a money settlement and will not pursue a criminal prosecution, if the taxpayer, in response to being given a copy of this Statement by an authorised officer, makes a full and complete confession of all tax irregularities."