Tax Evasion - Factors Allowing Sentence Mitigation  

Tax evasion is under increased scrutiny as the UK faces a long, drawn out recession.

Fewer than one in one-thousand people or companies subject to an Inland Revenue Investigation for tax evasion are placed at risk to receive a custodial sentence. But any persons involved in or facing the potential of a tax evasion charge should be aware of mitigating factors that may work on their behalf.

There are four primary factors that are considered when it comes to a custodial sentence being limited or avoided altogether for tax evasion sentencing. Those are the extent and amount of personal gain, the amount of lost revenue recovered, whether the offender admitted guilt and the overall character of the offender.

Is It Tax Evasion if There Was Little or No Gain?

Often, tax evasion prosecutions are the result of escalating events. But with the right help and advice, tax evasion prosecutions can be dealt with. It can be a difficult and intrusive time, but as the story of Beenie Man shows, tax evasion charges are not always upheld in court. The reggae star and Grammy winning singer Beenie Man owed almost one million dollars in unpaid taxes. And yet, the judge threw out the court case saying there was evidence that the singer was not informed of his rights when the auditors made their assessment. Many high earning celebrities become the focus of high profile tax evasion cases.

With Taxes and Penalties Paid, Is There Still a Tax Evasion?

If, through the course of negotiations as part of an Inland Revenue investigation, parties charged with tax evasion manage to pay to the government all monies owed, along with negotiated penalties, courts often find that the government has suffered little or no financial harm and as such placed the focus of potential custodial sentence on other determining factors.

Tax Evasion - Admission of Guilt

As with any criminal prosecution, admission of guilt plays a major part in determination of severity of sentence. If one stands before the court and simply admits that yes, they did a wrong thing and are remorseful of that act, cases involving tax evasion are usually removed from punishment by custodial sentence. In truth, where parties have admitted guilt and made restitution to the government, time spent in custody is an extreme rarity reserved only for high profile blatantly non-remorseful offenders.

A Final Tax Evasion Mitigation Factor

Perhaps the most lightly considered factor in determination of a possible custodial sentence as a result of tax evasion charges is the overall character of the offender. If one is a known member of an organised crime operation, likelihood of a stern warning from the government is extremely small. But if one is a simple business person who is shown to be a good contributing member of the community, again, a custodial sentence will likely be avoided.

Gilbert Tax Will deal with The Revenue For You

Short of a personal tragedy, there is very little in life that creates the stress and worry as does having to deal with an Inland Revenue investigation. For most people, the simple thought of having to deal with an Inland Revenue Investigation is so terrifying that they avoid the issue altogether and often envelope themselves in even greater tax difficulties. There is no need to let problems large or small with the HMRC escalate to the point where your quality of life and happiness suffer. At Gilbert Tax, we have over eighty years experience in finding closure for clients dealing with Inland Revenue investigation. We are also quite skilled in negotiating disclosure, relative to tax evasion, so as to avoid or limit financial penalties. For a private discussion of your tax matters, please call Gilbert Tax on 0800 734 3333 or email us at scott.gilbert@gilberttax.co.uk

Information about the different types of tax investigation cases we deal with on a regular basis.