HMRC Increases Activity Against Tax Evasion

Figures released following a Freedom of Information request and in response to questions from MPs, show that HMRC is increasing its efforts to clampdown on tax evasion and to bring criminal convictions against those involved in it.

MPs have urged HMRC to increase its activity to bring those suspected of tax evasion to justice. HMRC has been told to triple the number of criminal convictions it lays down to those found guilty of serious tax crimes.

This has resulted in the increase of ‘dawn raids’ on properties of individuals and companies that are suspected to be implicit in tax evasion. Over the last 5 years, the number of raids has increased by one third.

During the same period HMRC has also doubled the number of prosecutions for tax evasion, from 501 to 1067. However, the increase in the number of convictions was smaller, rising from 401 to 768.

This increase in activity shows the intent HMRC has to continue to clampdown on tax evasion, with particular focus on white collar crime and wealthy individuals.

From next month, it will also be a criminal offence if corporate organisations do not prevent tax evasion being from being encouraged by staff.

HMRC is also be able to apply to the Courts for production orders which, if granted, require documents and information to be provided by an individual or organisation suspected of tax evasion.

With HMRC being handed a target by the government to increase its results in tackling white collar crime and tax evasion, new powers and continued activity will play a part in achieving the objectives.

For individuals who may have unpaid tax through tax evasion, the net is closing and the time to act is now.

Our team of tax disclosures professionals assist in clarifying tax liabilities, and if required, we can assist in making a voluntary disclosure of unpaid tax to HMRC.

To discuss your tax position in complete confidence, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.