Tax Evasion - Factors Towards Receiving a Custodial Sentence  

Significantly less than one of every thousand people in the United Kingdom subject to an Inland Revenue Investigation for tax evasion are prosecuted to the degree that a criminal punishment sentence becomes a possibility.

There are many factors that determine the possibility and overall liability of a custodial sentence as a result of tax evasion. The first of these factors is the amount of tax evaded. If your income is primarily derived from operating a marketplace stall and you have been caught skimming a couple of hundred quid off of the books, so to speak, HMRC is merely going to impose upon you a financial penalty. In truth, the greater concern of The Revenue will be whether you have been faithfully collecting the VAT. Now, if you own twelve buy-to-let properties and have claimed the mortgage payments on these properties to be based on interest only loans, when they in fact were not, you will likely face much stiffer penalties.

Tax Evasion - For How Long a Period?

Another major factor in determining whether tax evasion involved a true criminal intent is the period of time over which the tax evasion occurred. If an Inland Revenue investigation can show that the parties involved were purposefully not declaring income over a course of perhaps several years, this implies a far more significant intent than a shortfall declared during a simple period of several months. When Inland Revenue investigations confirm from the outset of business, a person or firm never fully declared taxable income, prosecution with an eye towards a custodial sentence is more likely.

Efforts to Conceal Tax Evasion

Perhaps the greatest factor in determination of whether a person accused of tax evasion should face criminal prosecution is whether or not that person attempted to conceal the tax fraud. Obviously, if volumes of falsified documents have been prepared and presented as part of an Inland Revenue investigation with the hope of misleading a tax investigation, one has committed a more serious fraud than merely omitting earned income. Should this concealment of tax fraud include the drawing in of others, such as might be the case where a dishonest individual pressures clerks to assist in creating false ledgers, then the incident of tax evasion may be dealt with incredibly harshly.

Concerned about Tax Liability? Speak to Gilbert Tax

If you are concerned that you may have incurred a tax liability through unqualified tax avoidance or possible tax evasion, now is the time to contact Gilbert Tax. Conflicts with Inland Revenue and HMRC, both potential and existing, can almost always be remedied. Taking a proactive stance in resolving an Inland Revenue Investigation is of paramount importance. At Gilbert Tax, we are non-judgmental. The terms and conditions of your tax difficulties are irrelevant, as our job is to simply assist you in dealing with them. Let Gilbert Tax lift the burden and worry of dealing with Inland Revenue from your shoulders. We are available by phone 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.