Tax fraud is the deliberate evasion of paying taxes made by individuals, companies and trusts. This illegal activity typically involves taxpayers deliberately being dishonest about tax reporting in order to pay less tax. The evasion of taxes might be carried out in one of several ways, including declaring less income than a person or organisation has actually earned, overstating deductions or declaring less profits or gains.
A tax inspection is an in-depth investigation into a person’s or a company’s taxes. It is made by a tax authority with the aim to recover undercharged tax in previous years of assessment.
An inspection often starts because Her Majesty’s Revenue and Customs (HMRC) has some information about a taxpayer and that they might be committing fraud. The HMRC deliberately selects those cases in which they feel they have a good chance of successfully concluding.
HMRC has a hotline people can call in they wish to make a report about an issue related to individual’s or corporation’s tax affairs. Informers can also make a report via the HMRC website and they can do so anonymously.
To help avoid an inspection it is advised to explain something that may look unusual on your Tax Return. If, for example, your profits are lower than previous years, explain it in the dedicated white space on the return. Similarly, if your expenses are higher than usual, what is the reason for this?
HMRC is cracking down on those who are not paying the right amount of tax. Taxpayers who pay their tax fairly and innocently are also being caught in the crossfire. Random inspections are also made on a percentage of returns and as they are randomly selected, there is nothing a person or business can do to prevent this.
One of the most important things to remember if HMRC does open an enquiry is to get inspection representation.
Legal experts in tax fraud will negotiate with HMRC during the investigation in order to work out the outstanding tax due and fair tax penalties owed. Tax penalties can be as much as 100% on the tax that is owed and in certain cases, 200%. A professional tax investigation lawyer will deal with the case and negotiate a fairer amount to pay back. If you do not owe HMRC any money, a lawyer will prove that.
Without professional legal representation during an investigation into tax fraud, you could end up paying considerably higher tax penalties to HMRC and larger assessments. In short, without inspection representation you could have to concede to unreasonable demands.
For inspection representation in London get in touch with Selachiii LLP. If you are being investigated by HMRC for tax fraud it is important you receive expert legal advice. Our friendly team of lawyers will help you understand the process and the best steps to take. We will gather the necessary evidence to argue your case.
To speak with a solicitor call 020 7792 5649.
How Selachii Can Help
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