The offence
Tax evasion covers deliberately dishonest conduct to evade tax, prosecuted under the Fraud Act 2006 or the common law offence of cheating the public revenue. It is triable either-way and punishable by imprisonment. HMRC investigations are often lengthy and document-heavy.
Defences
- No dishonesty — for example, an honest mistake in a complex tax position
- Reasonable reliance on professional advice
- Disputed tax calculations and the underlying transactions
- Procedural issues with the interview and disclosure
Sentencing
Tax evasion is punishable by imprisonment and a fine, and the court may order confiscation and compensation. The guidelines assess the value evaded, the duration, and the sophistication.
Frequently asked questions
No. Avoidance is arranging affairs within the law to minimise tax; evasion is dishonestly evading tax and is a criminal offence.
Reasonable reliance on professional advice can be relevant to dishonesty, though it is not an automatic defence.
Confiscation and compensation orders often follow a conviction, and we advise on resisting and limiting them.