Tax Investigations, Prosecutions & Appeals 

Most civil tax investigations end with you and HMRC agreeing on how much tax and how much of a penalty you should pay. You don’t need to go to court if this is the case.

If you can’t reach a mutual agreement and disagree with HMRC’s decision on the case, you can make an appeal and begin litigation either in civil court or a tribunal.

If HMRC starts a criminal investigation against you and finds evidence of criminal offences, you may have to go to court to face criminal prosecution.

Whatever type of tax dispute you are involved with, it is vital to seek legal advice and representation as early as possible. This will give you the best chance of resolving your dispute without going to court.

If you do have to go to court, our solicitors can also advise, represent, and support you throughout.

If you are unhappy with the outcome of the HMRC investigation, you can request an internal review. This will be carried out by another HMRC officer who has no previous involvement with the case. They can either confirm or change the figures of the original investigation.

If you are still unhappy, you can appeal the decision in a civil court or tribunal, which starts the litigation process.

During litigation, you and HMRC will present evidence for your different tax calculations. The court or tribunal will decide on the correct tax figure.

If they find that you have underpaid, you will get a deadline to pay the difference, plus interest and a penalty payment. You may be allowed to make payments in instalments.

If you fail to make any required payments, you may face criminal prosecution.

Although HMRC handles minor tax avoidance and fraud cases with civil litigation, more serious offences risk criminal prosecution. These can include:

• VAT evasion
• Money laundering
• Income tax evasion
• Cheating the public revenue
• Providing false documents or information to HMRC
• Smuggling or fraudulent evasion of excise duty on imported goods (e.g. cigarettes, alcohol).

There are now more criminal prosecutions for tax offences than ever before. If you are facing tax litigation of any kind, you must get legal advice as soon as possible. Contact us today for a confidential chat with our experts.

You must pay any unpaid tax along with interest calculated since the date the tax was due. The additional penalties will depend on what type of litigation you are going through:

• Civil: You can negotiate a monetary penalty with HMRC based on the amount of unpaid tax, whether or not the missed payment was deliberate, and how cooperative you have been during the investigation. If you can’t negotiate a penalty, it will be decided in court or tribunal. HMRC can publicly publish information about penalties above certain thresholds.
• Criminal: A criminal prosecution can result in a fine, imprisonment or both. In either case, you must still pay back the tax as well. You may also be ordered to pay the prosecution’s costs. Tax evasion is taken extremely seriously and is often punished with severe penalties.

You may also be prosecuted under the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2017. Your possessions can be confiscated if you are convicted of money laundering.

Our solicitors may be help you avoid civil or criminal penalties or negotiate less severe penalties. Contact us for more information.