Commentary

A7.401 Tax evasion versus tax avoidance

Administration and compliance

A7.401 Tax evasion versus tax avoidance

Division A7.4     Tax avoidance

For updates affecting this Division please see Part A0 Updates

For the latest New Development, see ND.1940.

Tax avoidance and HMRC's response to it

A7.401 Tax evasion versus tax avoidance

Tax avoidance is not illegal (see A7.402). Tax evasion involves a breach of the law. It implies the use of fraudulent behaviour or concealment to escape payment of tax, or to obtain a reduction or repayment of tax which is not legally due. If such matters are detected an investigation by HMRC, involving interest and probably penalties, or even criminal proceedings, will probably result. Investigations are carried

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