Law Enforcement’s Fight Against Tax Evasion

February 11, 2013

In recent years, revenue officials in the UK have been getting a pat on the back for their efforts in tackling what is called the hidden economy. Based on the records of the HM Revenue and Customs (HMRC), there have been dramatic improvements in government's efforts to counter evasion. Indeed, by tightly scrutinising corporate tax returns, the agency has succeeded in bringing to the state what it rightfully deserves.

It should be noted though that the campaign against this kind of crime has cost great expenses, especially when giving the staff the necessary investigatory skills to perform their job well. This move to train the people is a smarter strategy as compared to merely dealing with compliance and assessment preparation, since tax evasion continues to be perpetrated on a massive scale.

Interestingly, the past few years have seen fewer prosecutions launched for filing false returns and business accounts. In fact, even convictions for such cases have halved as well. Despite the number of high-profile cases, all these seem to demonstrate a reluctance to take evaders to court. Unfortunately, what is aggravating is the fact that some people who are investigated for such crimes only end up being convicted for such lesser offences such as false statement of assets. Nonetheless, these things should not make you remiss of your duties as a citizen, as your venture might eventually lose its investments and reputation amidst a difficult lawsuit.

Of course, the principle of reasonable doubt holds true in these kinds of cases as in any other. Until proven guilty, respondents are considered innocent and given every opportunity to answer the charges against them. At best, you can opt for pecuniary settlement. But if in the mind of the investigating officers the case merits criminal prosecution, then you will have to brace yourself for the expensive costs of defending yourself in court.

You can, however, prevent things from coming to this by ensuring that your organisation complies with tax statutes. You can check out this website for support services from some of the best accountants in the UK.