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CPS to rapidly increase tax evasion prosecutions

The CPS has announced a dramatic rise in the number of tax evasion cases that will be taken to the criminal courts. It has confirmed that it wants to see a five-fold rise over the next few years. The target is for 1,500 prosecutions nationally by 2014-15.

The Director of Public Prosecutions, Keir Starmer QC, has confirmed that the need to “deter, detect and prosecute” tax evasion is even greater in difficult economic times.

The annual cost of tax evasion for the UK economy is estimated to be £14bn, which equates to £530 per household.

The CPS is now dealing with the prosecutions, following a merger with the Revenue and Customs Prosecution Office. HMRC continue to do the investigative work and provide the evidence to the CPS to decide on whether a prosecution is appropriate.

The CPS has confirmed that it will not only prosecute individuals and organised criminals, but will also target those who set up dishonest tax avoidance schemes. Such schemes are often arranged by professional advisors, but this does not make them legal in the eyes of the prosecution.

Andrew Swan, Head of Financial Crime at Newcastle-based law firm Short Richardson & Forth LLP commented: “Last year saw a significant increase in the fight against tax evasion by HMRC. The criminal investigation teams have grown substantially and it has introduced regional task forces to target specific work sectors. In the North East they are targeting those in the hair and beauty business, whilst elsewhere it is doctors, dentists and lawyers.”

“Working closely with HMRC, the CPS is clearly sending out the same message.”

“I am dealing with an increasing amount of tax evasion cases and defending clients from various backgrounds. Any case can be won or lost in its early stages, so I would strongly advise that those under investigation take professional advice as soon as possible.”

This was posted in Bdaily's Members' News section by Short Richardson and Forth LLP .