The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Most 'wrongdoing' cases (ie cases where the business has failed to deal with its VAT affairs correctly and VAT has been under paid as a result) will be resolved using civil procedures, with or without penalties. However, on occasion, HMRC may consider that the wrongdoing may be sufficiently serious for a criminal investigation to be required.
Please see the Managing serious defaulters guidance note for more information on civil investigations.
Further information can be found in EM0600 and Criminal justice and investigations .
Currently the offences which are considered to be 'heinous' and therefore merit criminal investigation are:
attacks on the tax system by organised criminal gangs and systematic frauds, including conspiracy, where losses represent a serious threat to the tax base
cases involving an individual in a position of trust or responsibility – typically a solicitor, barrister or an accountant
submission of materially false statements or documents in the course of a civil investigation
tendering of false or altered documents, or the misrepresentation of material facts in support of an avoidance scheme
deliberate concealment, deception, conspiracy or corruption
the use of false or forged documents
importation or exportation involving breaches of prohibitions or restrictions
money laundering (note that HMRC is particularly likely to undertake a criminal investigation in cases involving accountants, solicitors and other professionals). Please see MLR1PP2000
repeat offenders who have committed similar acts previously
theft, misuse or unlawful destruction of HMRC documents
impersonation of or threatening / assaulting an HMRC official
persons or businesses that are linked to suspected wider criminality, whether domestic or international, involving non-revenue offences
Please see CH27200.
HMRC has also indicated that it will seek a criminal prosecution for the following fiscal offences:
VAT missing trader Intra-Community (MTIC) fraud (see Missing trader intra-community fraud)
VAT 'bogus' registration repayment fraud, and
organised tax credit fraud
Offences that are connected with VAT are usually classified under the following three headings.
Any act or
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