SCO investigates cases involving suspected avoidance where there
is a risk of loss of Revenue to the Exchequer and there is no
provision elsewhere in the Department to deal with them adequately.
This may be because a new or unusual device is being used, because
investigation on an industry-wide basis is required, or perhaps
because extensive third party investigation is necessary.
Such investigations may be very time consuming and difficult
to fit into local programmes of work.
SCO avoidance groups are constantly on the lookout for cases
where tax may be at risk in areas, which do not fall within the
remit of other specialist offices. Many investigations are
uncovered from project, and other review work, without local office
involvement but appropriate cases, which come to light in local
offices, should be referred to SCO.
The very nature of this work makes it impossible to provide
rigid guidance as to what should be referred to SCO but current
areas of interest include
SCO will investigate only where the tax at risk is likely to be
substantial but is prepared to take on speculative cases including
those where the superficial risk is small but where there is
potential to uncover greater liabilities.
Any case, which involves any of these or other aspects, and
where avoidance of tax may be a possibility, should be referred to
a compliance manager for guidance.
