Chapter AGL8200

Published date10 April 2016
Record NumberAGL8200
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
General

If a registrable person, for the purposes of evading tax, does any act or omits to take any action, and the conduct involves dishonesty (i.e. fraud), that person makes himself liable, under paragraph 1 of the Finance Act 2007, Schedule 24 as amended, to a penalty.

This parallels the existing penalty for civil evasion in VAT and is in line with the excise penalty regime. As is common practice in other tax areas, the law allows us the discretion to deal under a civil penalty regime with an offence which would otherwise require prosecution as a criminal offence. This not only provides an incentive for the taxpayer to co-operate with us once the fraud has been discovered, but prevents needless expense in taking cases involving small amounts of tax to the criminal court.

The guidance in Code of Practice 9 (2005) (HMRC website) which covers cases where we suspect serious fraud and...

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