Response to Law Commission’s Consultation on its 14th Programme of Law Reform

Bourton, Sam

Abstract

Historically, little use was made of the criminal justice system in addressing tax evasion in the United Kingdom (UK), with tax authorities preferring to conduct civil investigations, resulting in the imposition of civil penalties. From 1998-2002, the Inland Revenue brought only 263 prosecutions for tax offences, with, at its lowest point in 2001/2, a mere 30 individuals prosecuted for this offence. By 2007, Her Majesty’s Revenue and Customs (HMRC) only prosecuted two in a thousand cases of suspected tax evasion, with the prosecution rate subsequently declining by a further 41% until 2010. The next decade saw a transformation in the enforcement of tax offences, in large part owing to the financial crisis and the public dissatisfaction with responses to high-profile tax evasion scandals. HMRC were tasked with increasing the number of prosecutions for tax evasion offences, from 165 in 2010 to 1165 prosecutions annually by 2014/15, by making sufficient referrals to the Crown Prosecution Service. In response, the number of tax evasion prosecutions dramatically increased, from 420 in 2010/11 to 1288 in 2014/15.

• Report Type: Research Report
• Deposit Date: Jan 12, 2023
• Public URL: https://uwe-repository.worktribe.com/output/10334886
• Related Public URLs: https://www.lawcom.gov.uk/14th-programme/