Tax fraud achieved by HMRC last year were up 58%.

Figures released recently show that the number of convictions for tax evasion and tax fraud achieved by HMRC last year were up 58%.

The figures show that prosecutions increased from 795 to 1,258 over the period to 2015, and that HMRC had exceeded its target number of convictions for the year which was set at 1,165.

During the period it has also been confirmed that there was an additional £26bn in unpaid tax recovered and over 400 years in custodial sentences handed out to the most serious offenders of tax evasion and fraud.

Despite the results HMRC has still been criticised for the low number of criminal prosecutions reached for offshore tax evasion.

As a result of continued pressure, HMRC has announced new draft legislation which could lead to an increase in prosecutions along with tougher sanctions and penalties, particularly for the most serious offenders and those who assist in tax evasion and tax avoidance.

One of the proposals removes the need for HMRC to prove, in serious cases, an offender’s intent to not declare income and gains. However, this power may be restricted to cases where the amount of unpaid tax is £25,000 or more.

HMRC is facing continued pressure from the government to clampdown on tax evasion and tax avoidance, and to reduce the overall tax deficit. The recent announcement of additional funding of £60m by 2021 to help increase criminal prosecutions will assist HMRC, as will new powers and legislation.

The threat to individuals who have offshore bank accounts, or undeclared income from investments such as rental property is constant, and with HMRC having increased resources and powers, it may only be a matter of time before you fall under the spotlight, and at which point it may be too late. In serious cases, individuals can face stiff financial penalties and even criminal prosecution.

Even with favourable disclosure facilities such as the Liechtenstein Disclosure Facility (LDF) closing at the end of 2015, you will still be able to make a voluntary disclosure of unpaid tax in order to clear up your affairs.

To discuss your circumstances with our experienced team of tax investigations professionals in complete confidence, you can call us on 0113 387 5670 or fill out an Enquiry Form and we will contact you straight away.