HM Revenue and Customs
HM Revenue and Customs are one of the most powerful bodies investigating crime and tax evasion. They conduct a criminal investigation, rather than a civil investigation, in situations where they want to send a strong deterrent message or where they regard the alleged conduct as being sufficiently serious to merit a criminal sanction.
HM Revenue and Customs will consider a criminal investigation where they allege:
- VAT Missing Trader Intra-Community (MTIC) Fraud;
- VAT 'Bogus' registration repayment fraud;
- organised activity attacking the tax system or systematic frauds where losses represents a serious threat to the tax base;
- money laundering, particularly when professional people are involved;
- that deliberate concealment, deception, conspiracy or corruption is suspected;
- the use of false or forged documents;
- importation or exportation breaching prohibitions and restrictions;
- that previous offences have been committed;
- that, pursuing an avoidance scheme, reliance is placed on a false or altered document or such reliance or material facts are misrepresented to enhance the credibility of a scheme.
How will I know if the Revenue will consider bringing criminal charges against me?
The following are indicative factors of an investigation being treated as a criminal investigation:
- you are invited to attend a formal interview under caution;
- the Investigating Officer is from the SCO (Special Compliance Office);
- the Investigating Officers have obtained a warrant to search your premises.
Tax Investigations.
If you are aware that you are the subject of a tax investigation you should contact us at your earliest opportunity for expert advice. Tax investigations are complex and expert advice is essential.
Solicitor or Accountant?
If you are considering instructing an Accountant or a Solicitor, you should be aware that information you provide to your Solicitor enjoys a special status called legal professional privilege. Your Accountant cannot provide this protection, although they may be able to gain it if they are instructed by a Solicitor. If there is to be an assessment of the Tax due and a Report prepared about your Tax affairs, we can instruct an Accountant on your behalf.
Civil Settlement
It is often possible to arrange to settle Tax debts without the involvement of the Criminal Courts in a civil settlement. If Tax is settled on a civil basis, in addition to the Tax due, there will be interest on the outstanding Tax and a penalty. Penalties are negotiable and there are discounts for mitigating circumstances such as full co-operation.
Penalties for incorrect returns
A new single penalty regime applies to tax returns for VAT, PAYE, National Insurance contributions, Capital Gains Tax, Income Tax, Corporation Tax and the Construction Industry Scheme. The regime aims to encourage the accurate filing of returns.
The penalties charged are calculated as a percentage of the tax due. It is possible to negotiate penalties and HMRC will take into consideration the level of cooperation, the size and gravity of the problem and if an unprompted disclosure is made.
Tax Amnesty
A tax amnesty is a limited opportunity for a specified group of taxpayers to resolve their tax understatements (including interest and penalties) without fear of a full tax investigation or a criminal prosecution.
Recent amnesty’s have included a plumbers and electricians, Tax Health Plan for medical professionals, Liechtenstein Disclosure Facility and other disclosures aimed at those with off shore bank accounts.
Contact Us
Please contact one of our fraud solicitors to assist you if you are under investigation by HM Revenue and Customs. We can also attend any inspections, searches or interviews.