Inland Revenue Sets Out Prosecution Policy

by Robert Lee, Tax-News.com, London

21 July 2004

The Board of the Inland Revenue has set out its prosecution policy which explains the department’s rationale in pursuing convictions for a variety of tax, benefit and money laundering offences.

According to the Board’s general principles a selective prosecution policy is used, which is intended to bolster the department's overall enforcement strategy by focusing on high profile cases more likely to have a greater deterrent effect. This is applied across several areas of taxation including income tax, National Insurance contributions, stamp duty, tax credit, child benefit frauds and in cases where money laundering can be proved.

The Revenue reserves the right to total discretion as to which cases it decides to prosecute, although these will mainly be restricted to instances of deception, falsification of documents, concealment and conspiracy.

Whilst the Revenue does not necessarily pick the cases it prosecutes based on the size of the fraud, it is more likely to proceed with criminal charges where the alleged fraud is of a substantial amount.

The policy also stipulates that pursuit of criminal proceedings does not preclude recovery of monies through civil actions.

Taxpayers who have previously committed tax evasion and wish to put their affairs in order may approach the Revenue to make a voluntary disclosure. If the disclosure is both “complete and spontaneous” then it is the policy of the Board of Inland Revenue to settle civilly in such circumstances. This does not apply if taxpayers are already subject to an enquiry or if disclosure is triggered by the belief of imminent discovery by the Inland Revenue.

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