Tax Evasion in UK Law

Leading Cases
  • Serious Organised Crime Agency v Gale and another
    • Queen's Bench Division
    • 12 May 2009

    To consider the evidence adduced in the Portuguese proceedings is not to re-litigate because what is in issue in these proceedings is not the commission of the specific offences alleged against DG in Portugal but whether on the evidence before this court of the material considered by the Portuguese Court, together with the evidence available to the Spanish Courts and other material not considered by the courts in either jurisdiction, the claimant has proved on the balance of probabilities that DG's wealth was obtained through unlawful conduct of a particular kind or of one of a number of kinds, each of which would have been unlawful conduct: see Section 242 (2) (b) of POCA – that is to say drug trafficking, money laundering and tax evasion.

    I have made specific findings of fact in the course of this judgment – see paragraphs 54, 55, 57, 65, 66, 72, 73, 76, 78, 84, 89, 90, 93, 97, 99, 100, 103, 104, 109, 111, 115, 116, 122, 123, 124, 125, 126, 132, 134 and 136 —and so at the risk of some repetition, I am in no doubt that DG and TG engaged in unlawful conduct – in DG's case, money laundering and drug trafficking, in TG's case, money laundering. There is also evidence of tax evasion in four jurisdictions.

  • Ivey v Genting Casinos (UK) Ltd (trading as Crockfords)
    • Supreme Court
    • 25 October 2017

    There is no reason why the law should excuse those who make a mistake about what contemporary standards of honesty are, whether in the context of insurance claims, high finance, market manipulation or tax evasion. The law does not, in principle, excuse those whose standards are criminal by the benchmarks set by society, nor ought it to do so.

    When dishonesty is in question the fact-finding tribunal must first ascertain (subjectively) the actual state of the individual's knowledge or belief as to the facts. When once his actual state of mind as to knowledge or belief as to facts is established, the question whether his conduct was honest or dishonest is to be determined by the fact-finder by applying the (objective) standards of ordinary decent people.

  • Red 12 Trading Ltd v HM Revenue and Customs
    • Chancery Division
    • 20 October 2009

    Further in determining what it was that the taxpayer knew or ought to have known the tribunal is entitled to look at the totality of the deals effected by the taxpayer (and their characteristics), and at what the taxpayer did or omitted to do, and what it could have done, together with the surrounding circumstances in respect of all of them.

  • Mobilix Ltd ((in Administration)) v HM Revenue and Customs; Blue Sphere Global Ltd v Same; Calltel Telecom Ltd and Another v Same
    • Court of Appeal (Civil Division)
    • 12 May 2010

    The test in Kittel is simple and should not be over-refined. It embraces not only those who know of the connection but those who “should have known”. If a trader should have known that the only reasonable explanation for the transaction in which he was involved was that it was connected with fraud and if it turns out that the transaction was connected with fraudulent evasion of VAT then he should have known of that fact.

  • Saunders v Edwards
    • Court of Appeal (Civil Division)
    • 13 March 1987

    Where the plaintiff's action in truth arises directly ex turpi causa, he is likely to fail, as he did in Alexander v. Rayson, [1936] 1 King's Bench 182; J.M. Allan (Merchandising) Ltd v. Cloke, [1963] 2 Queen's Bench 340; Ashmore, Benson, Pease & Co, Ltd. v. A.V. Dawson Ltd. [1973] 1 Weekly Law Reports 828; and Thackwell v. Barclays Bank plc, [1986] 1 All England Reports, 676. Where the plaintiff has suffered a genuine wrong, to which allegedly unlawful conduct is incidental, he is likely to succeed, as he did in Bowmakers Ltd. v. Barnet Instruments Ltd.

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  • The Facilitation of Tax Evasion Offences (Guidance About Prevention) Regulations 2017
    • UK Non-devolved
    • January 01, 2017
  • Finance Act 2016
    • UK Non-devolved
    • January 01, 2016
    ....... (4) The amendments made by this section are treated as having come into force on 21 March 2016. 10 . Tax avoidance and evasion PART 10 . Tax avoidance and evasion . General anti-abuse rule General anti-abuse rule . S-156 . General anti-abuse rule: provisional ......
  • Finance (No. 2) Act 2017
    • UK Non-devolved
    • January 01, 2017
    ...... T (“the transaction”), and(b) conditions A to C are satisfied.(2) Condition A is that the transaction was connected with the fraudulent evasion of VAT by another person (whether occurring before or after T entered into the transaction).(3) Condition B is that T knew or should have known that ......
  • The Double Taxation Relief and International Tax Enforcement (Guernsey) Order 2018
    • UK Non-devolved
    • January 01, 2018
    ...... THE TWO GOVERNMENTS FOR THE ELIMINATION OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL GAINS AND THE PREVENTION OF TAX EVASION AND AVOIDANCE . Deputy Gavin St Pier . President, Policy & Resources Committee . Sir Charles Frossard House . La Charroterie . St Peter Port . ......
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Books & Journal Articles
  • Tax evasion and financial instability
    • Nbr. 27-2, May 2020
    • Journal of Financial Crime
    • 531-539
    Purpose: The purpose of this paper is to explore the association between tax evasion and financial instability. The discussion also examines the effects of tax evasion for financial instability. D...
  • Tax Evasion and the Internet
    • Nbr. 2-2, April 1998
    • Journal of Money Laundering Control
    • 105-114
    The purpose of this article is to address the issue of tax evasion and the internet. While the internet has been the subject of growing media attention, the concept of tax evasion and the internet ...
  • Tax evasion and avoidance typologies
    • Nbr. 11-2, May 2008
    • Journal of Money Laundering Control
    • 123-134
    Purpose: The purpose of this paper is to explore tax evasion and avoidance typologies with a view to understanding how they work and the implications for those who handle the wealth of others. Des...
  • Tax evasion and competition
    • Nbr. 58-5, November 2011
    • Scottish Journal of Political Economy
    Using a Cournot oligopoly model with an endogenous number of firms and evasion of indirect taxes, we show that more intense competition may have the negative side effect of increasing tax evasion, ...
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Law Firm Commentaries
  • Civil Recovery And Tax Evasion
    • Mondaq UK
  • HM Revenue & Customs - Tax Evasion Enforcement
    • JD Supra United Kingdom
    There has been much publicity regarding tax avoidance of late in the UK. In the age of austerity, tax avoidance by companies is scruitnised by the press and is a hot topic with the public.
  • The failure to prevent tax evasion
    • JD Supra United Kingdom
    The Criminal Finances Act 2017 (“the Act”)1 came into force on 30 September 2017. The Act contains a patchwork of new powers, and amendments to existing legislation, largely directed at combatting ...
  • UK HMRC Increases Focus on Combatting Tax Evasion
    • JD Supra United Kingdom
    HM Revenue & Customs has provided a timely reminder of the need for organisations with a connection to the United Kingdom to review their prevention procedures regarding the failure to prevent the ...
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  • Chapter MLR3C8595
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... During visits to check compliance with the Regulations, Officers may inadvertently come across information that represents a risk of tax evasion or an undeclared tax avoidance schemes. For example, during a visit to a HVD “off record” cash sales are identified. Again it is important to ......
  • Chapter CH401281
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... may be liable to an enabler penalty if they have encouraged, assisted or otherwise facilitated another person to carry out offshore tax evasion or non-compliance. . You should read the full technical guidance on offshore enabler penalties before reading this guidance - see CH124000. For ......
  • Chapter CH124200
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... Sch20/FA16 applies a penalty on a person who has encouraged, assisted or otherwise facilitated another person to carry out offshore tax evasion or non-compliance where the tax at stake is income tax, capital gains tax or inheritance tax. This guidance will help you. determine when a penalty ......
  • Chapter CH124300
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... A penalty is chargeable where a person has encouraged, assisted or otherwise facilitated another person to carry out offshore tax evasion or non-compliance, and the two conditions at CH124400 are satisfied. A person carries out offshore tax evasion or non-compliance if they. commit a ......
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