At Altion Law, our tax fraud solicitors specialise in assisting clients facing an HMRC investigation for suspected tax evasion or fraud. With unparalleled expertise in HMRC matters and decades of experience in the field, you can be confident of receiving the very best legal advice with a distinctly commercial focus coupled with exceptional client care standards.
For a confidential free discussion, call us today on 01908 414990, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
What is Tax Fraud?
Tax fraud occurs when a taxpayer sets out to deliberately defraud HMRC by cheating the system and effectively stealing public funds. HMRC defines the term widely, stating that any of the following acts, when carried out with a view to gaining a tax advantage, can amount to tax fraud:
- Deliberate concealment.
- Deliberate omissions.
- Deliberate misinterpretation of information.
- Presenting information or circumstances to HMRC in a false or deceptive manner.
If you are concerned that you have acted in a way that may constitute tax fraud or evasion, timely legal advice and specialist representation from tax fraud solicitors are crucial. By addressing the issue head-on, you stand a far better chance of negotiating a favourable settlement with HMRC than if you simply bury your head in the sand and wait for HMRC officers to come to you.
What type of acts can constitute Tax Fraud?
The types of acts that might constitute tax fraud are wide and varied. Some common examples include the following:
- Underreporting your taxable income.
- Overstating your expenses.
- Preparing false invoices.
- Not declaring imported goods.
- Missing trader fraud.
- Assuming a false identity to undertake taxable transactions.
- Hiding your wealth offshore.
- Claiming tax reliefs to which you are not entitled.
What are the penalties for Tax Fraud?
The penalties for tax fraud vary depending on the severity of the matter and the extent of the loss caused to the revenue.
HMRC usually prefers to pursue tax fraud using its civil powers rather than its criminal ones. Civil investigations tend to be quicker and cheaper, and usually result in a swifter recovery of the unpaid tax, interest, and additional financial penalties.
In cases of suspected tax fraud, HMRC conducts civil investigations in accordance with its Code of Practice 9, also known as COP9. The COP9 process involves HMRC sending a letter to the taxpayer offering them the opportunity to make full disclosure of their tax fraud in return for immunity from criminal prosecution. This is known as the Contractual Disclosure Facility, or ‘CDF’.
A taxpayer in receipt of a CDF has the following two options:
- Accepting HMRC’s offer, admitting to the fraud, providing full disclosure of their tax fraud, and repaying the tax together with interest and penalties.
- Rejecting HMRC’s offer, either by denying any wrongdoing or ignoring the CDF.
The COP9 procedure is only used when HMRC strongly suspects tax fraud on the part of the taxpayer. Failing to properly engage with HMRC in connection with the process, or making the wrong decision, can have severe repercussions, including a criminal prosecution. It’s highly advisable to seek support and guidance from experienced tax fraud solicitors like ours when navigating the CDF procedure. We’ll ensure you choose the right option for your business and secure the best possible outcome.
While HMRC prefers to go down the civil route when addressing tax fraud, it does not shy away from initiating a criminal investigation where it considers it necessary. Examples of the types of situations that may warrant a criminal investigation include when HMRC wants to send a strong deterrent message or where the tax fraud is so severe that a civil investigation will not yield the desired results.
HMRC does not conduct criminal prosecutions; they gather the evidence to pass to the Crown Prosecution Service (CPS), who reviews it and decides whether to proceed. If the CPS launches a criminal prosecution and succeeds, you may receive a substantial fine and could even be imprisoned.
How can our Tax Fraud Solicitors help?
Being suspected of tax fraud by HMRC is an incredibly serious matter. If not handled correctly from the outset, HMRC’s enquiries can become a criminal investigation and, in some cases, result in a prison sentence.
Our specialist tax fraud solicitors and barristers are dedicated to assisting clients facing HMRC investigations into tax fraud. We will represent you throughout the matter, liaising with HMRC on your behalf and protecting your interests at every stage. We will work tirelessly to avoid a criminal investigation or prosecution, using our experience to effectively engage with HMRC and negotiate a favourable settlement on your behalf. With our expert support and guidance, you stand the best chance of resolving the issue swiftly and securing the most lenient penalty available.
For a confidential free discussion, call us today on 01908 414990, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
