HMRC have issued an update on their current activities to tackle tax evasion – defined as being where there is a deliberate attempt not to pay the tax which is due. The message from the update is clear – HMRC are seeking to pursue those who engage in evasion with serious consequences; from financial penalties to criminal conviction and imprisonment.

The update cites that in the last three years HMRC have prosecuted 2,343 individuals, securing a collective total of 2,500 years in custodial sentences. A total of 540 people were convicted of tax evasion in 2012-13 and HMRC are aiming for a target of at least 1,165 tax fraud prosecutions in 2014–15, up from 165 in 2010–11.

The briefing also outlines a range of activities being used to detect and deter rule-breakers as part of the Government’s £1 billion investment to increase tax compliance. This includes what is referred to as “focused compliance work” across the full range of taxes and duties for which HMRC are responsible. More information is available in the briefing.