Key Information - Tax Evasion

Firstly it may be helpful to break down the legal definition of tax evasion and then to look at some illustrative examples.

What is tax evasion?

Tax evasion is the general term used to describe a deliberate attempt to evade paying taxes by illegal means.

Tax evasion can be committed by individuals, companies, trusts and other such entities.

Tax evasion is the act of deliberately misrepresentingor concealing the true state of ones affairs from thetax authorities. In the UK the governing tax authority is Her Majesties Revenue and Customs

Tax Evasion essentially is dishonest tax reporting.

Examples of conduct leading of tax evasion:-

• Declaring less income, profits or gains than actually earned
• Overstating expenses or deductions

Is tax evasion a crime?

The simple answer is yes. Tax evasion is very much frowned upon, both by society and by the judicial system

However, there are many factors which can influence how HMRC deal with instances of tax evasion.

You may find it useful to read our associated content which can be found under the tax investigation tab. Please follow this link http://www.admiraltax.co.uk/investigations

Iwould also encourage you to read the following key information by clicking on the links below:-

Special Investigations http://www.admiraltax.co.uk/investigations/article/number/1

Civil Investigation of Fraud http://www.admiraltax.co.uk/investigations/article/number/2

Voluntary Disclosures http://www.admiraltax.co.uk/investigations/article/number/5

Will I be prosecuted for tax evasion?

If you come forward and voluntarily disclose the full extent of the tax evasion to HMRC, then the simple answer is highly unlikely!!

You are much more likely to receive a financial penalty.

HMRC adopt a selective criminal prosecution policy in cases of serious or deliberate tax evasion. Factors which are considered before a criminal investigation is pursued include, but are not limited to:-

• The nature and extent of the tax evasion. For example does the tax evasion include an element of fraud and/or money laundering
• The tax lost as a result of the tax evasion
• The conduct displayed during the tax evasion
• The number of years covered by the tax evasion
• The level of personal gain made as a result of the tax evasion
• Is the tax evasion part of an organised attack of the system

What is beyond question is that HMRC take a very dim view of any form of tax evasion. Even if you avoid criminal proceedings, you are highly likely to receive a stiff financial penalty, which can be as much as 100% of any tax underpaid.

The level of the financial penalty levied can be greatly reduced if you come forward of your own volition. This is often referred to as an unprompted disclosure.

Admiral Tax Investigations guarantee all fees up front, so you our client can plan appropriately and worst of all avoid any unexpected billing surprises.

For a no commitment, confidential discussion about how we can resolve your tax investigation and save you money, contact Admiral Tax Investigations day or night:

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