Co-operate and negotiate

ZAFAR REZVI considers the impact of compliance with the Police and Criminal Evidence Act 1984 on tax investigations.

CLAIMS BY HM Revenue and Customs for tax-geared penalties constitute a criminal offence or charge for the purposes of Article 6 of the European Convention on Human Rights (ECHR). By contrast HMRC do not accept that fixed penalties for relatively modest amounts constitute an Article 6 criminal charge (see Sharkey v De Croos (26/01/2005) (SPC000459) [2005] STC (SCD) 336). A criminal charge for the purposes of Article 6 has an autonomous meaning — see Han & Yau v CCE [2001] STC 118 and King v Walden (HMIT) [2001] STC 822. So what is the effect if any of a failure by those investigating a claim for penalties to issue a caution or otherwise comply with the codes issued under the Police and Criminal Evidence Act 1984 (respectively the...