We’re all required to pay our taxes. It’s a part of working life or owning a business that taxes need to be paid to HMRC. While tax avoidance isn’t illegal if done within the provided legal frameworks, tax evasion is where you could get penalised or worse, convicted for such activity.
In the world of VAT, a taxable person may be unaware of fraud happening within the supply chain. However, even if they’re not knowledgeable, they can still be regarded as fraudsters. That’s why it’s important that any business owner vet all its suppliers and those they work with where VAT exists within the transaction.
In this guide, we’ll look at VAT fraud and how it occurs. While some might find themselves unwillingly part of a tax fraud operation, others may go into it intentionally or without full knowledge of how VAT works.
With that being said, we’re here to help those accused of VAT fraud so that you can get the best legal advice and guidance to help with your case.
Let’s start with the basics: what is VAT fraud? VAT fraud is the illegal activity of evading the value-added tax that’s applied to payments. Examples of this may be drafting up false invoices, underreporting sales or engaging in carousel fraud schemes. This is where VAT is fraudulently claimed on goods that are moved between companies.
Sentences for VAT fraud can vary quite broadly, depending on the case specifics. Penalties could be anything as tame as fines to imprisonment and other legal consequences that are often incredibly damaging to face.
It’s important that you’re aware of how VAT fraud occurs and that taxable persons who are in business are all at risk if they’re not paying close attention to the VAT added onto products or services.
A person who is liable to be registered for VAT, for example, but deliberately does not register for it via HMRC, is committing fraud. It’s therefore imperative that any business should register for VAT.
What can be expected when someone is accused of VAT fraud by HMRC or the authorities? This type of tax fraud, like many types of fraud, is taken incredibly seriously, and if found to be evading tax, you could find yourself in very hot water as a result.
After an arrest has been made, the process will involve several stages from the investigation to charging and pre-trial hearings. Each stage will require careful navigation when it comes to facing the charges being brought against you or someone you know.
That’s where tax fraud solicitors are helpful to have, so that this can be navigated with legal expertise. That way, you can get the best strategic advice, a robust defence and hopefully the best possible outcome.
Once an investigation is opened, those responsible for convicting will take a look at all the information and evidence provided by HMRC. This evidence will be submitted to those representing you as a solicitor to challenge in court, usually within those pre-trial hearings.
It’s good to know that there can often be mitigating factors which can be posed as a potential defence or to give you the best outcome where possible. This includes a lack of prior criminal history. Evidence of compliance efforts as well as personal circumstances that have influenced the offence.
Going through all of these mitigating factors is important because if your back is against the wall and you’re facing the high likelihood of convictions, then these factors might be worth presenting as a defence or as a way to liaise and get a better deal.
When it comes to VAT fraud, it’s important that when you’re accused, you get legal representation fast. A lot of those who conduct investigations will want to lull you into a false sense of security so that if anything you do say once your rights have been read out, these admissions may be used in court.
It’s therefore advisable that you discuss any details of your case with tax fraud solicitors before you go further with any interviews or make any decisions that may prove detrimental.
As solicitors, we’re here to represent you, and so when it comes to being accused of VAT fraud, we look at your case in full. The initial discussions we have with you are essential to your journey. It helps identify any vulnerabilities in the evidence that has already been gathered by the prosecutors.
So what can you expect when you are represented by fraud solicitors from ABV? Well, we help provide your defence in a number of ways. We’ll examine the process that HMRC has taken for any potential errors or legal overreach that have occurred.
We’ll be there to safeguard your rights in any interviews to make sure nothing that has been said has been misconstrued against you.
We help to challenge the evidence that’s been unlawfully seized or handled and identify any non-fraudulent explanations of why this isn’t VAT fraud. This may be record-keeping errors or advice that was received in good faith.
We also help to negotiate with HMRC directly to help contain the cause to a civil penalty rather than it escalating into a criminal case carried on to the courts. Ultimately, we’re here to guide you throughout the entirety of the process.
We make sure that you’re getting fair representation and treatment at all times. There have been plenty of cases in the past where individuals or businesses have been wrongly convicted, which is something we want to avoid with all of our clients facing VAT fraud charges.
If you’re looking for guidance and support when it comes to VAT fraud accusations and you require representation, we’re always a phone call away. We can’t stress the importance of getting support and representation immediately, especially when you’ve got word that an investigation is being launched against you.
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