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HMRC have launched 16 criminal investigations as a result of recent tax disclosure initiatives.
The offshore disclosure facility (ODF) and new disclosure opportunity (NDO) produced £485 million from more than 50,000 voluntary disclosures, while the tax health plan (THP) raised £10 million as a result of 1,500 voluntary disclosures
Gary Ashford, head of tax Investigations at RSM Tenon, said, ‘HMRC are sticking to their word to try to deliver a fivefold increase in prosecutions by opening these criminal investigations, and this is a clear indication they are stepping-up their fight against tax evasion and non-compliance. Opening criminal investigations on the medical profession demonstrates that HMRC are prepared to take on any sector.’
The number of criminal investigations may not be large, but Mr Ashford pointed out that it is significant, given the Revenue has opened very few in the whole of the past decade because of the high level of resources require.
The fact that the department is ramping up its criminal investigations will have an impact as a deterrent. HMRC have largely sorted out their new powers and structures, and are now ‘ready to business’, said Mr Ashford. ‘They are undoubtedly taking a more aggressive approach to tax evasion.’
He added that the Revenue is focusing on offshore accounts, and he expects to see a rise in the number of people taking up the Liechtenstein disclosure facility (LDF).
The advice to taxpayers who have withheld information about income, must be that they should make a voluntary disclosure as this should give them some protection against criminal investigation and penalties, added Mr Ashford. Alternatively, if appropriate, they can take advantage of the LDF, which is open until March 2015.
Chris Harrison, HMRC criminal investigations deputy director, said, ‘We are confident that these and more cases will be taken forward in the future. This is proof of our determination to increase the number of prosecutions we take forward in all areas.’
