What is the difference between tax avoidance and tax evasion?
Tax evasion should not be confused with tax avoidance – the legitimate structuring of your tax affairs in order to lower your tax liabilities.
Tax evasion is the deliberate failure to pay taxes, commonly by making a false report.
If you think HMRC suspect you of committing tax evasion you need help. Pick up the phone NOW and call a tax evasion expert at KinsellaTax on 0800 471 4546.
Tax evasion involves taxpayers deliberately concealing the true state of affairs to HMRC to reduce their tax liability. Dishonest tax evasion reporting includes understating your income, profits or gains and overstating your deductions.
Former British Chancellor of the Exchequer, Denis Healy, said:
“The difference between tax avoidance and tax evasion is the thickness of a prison wall”.
Although only a small percentage of tax evasion cases result in a criminal tax investigation, it is a possible outcome.
Criminal tax investigations depend on your willingness to co-operate with HMRC and the severity of the tax evasion.
HMRC tax investigations for tax evasion usually result in a financial settlement, often including interest and tax evasion investigation penalties. These penalties can be up to 200% of the tax owed.
Having professional representation during your tax evasion investigation will considerably reduce your tax investigation penalties.
Tax investigations into tax evasion are carried out by the following HMRC departments:
Special Civil Investigations (SCI)
Civil Investigation of Fraud (CIF)
HMRC tax evasion investigations are not something that can be dealt with on your own. Give yourself the best possible chance of a fair settlement and call KinsellaTax the moment you receive a tax evasion investigation letter from HMRC.
KinsellaTax have acted for many clients accused of tax evasion and are here to help you.
We are here for you 24 hours a day, 7 days a week on 0800 471 4546. Call anytime to speak with one of our dedicated tax evasion investigation experts.