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09 Jun 2021

Statistics show that organised fraud crime has become one of the most commonly committed offences in the UK in recent years. This has led to an increase in demand for a fraud solicitor who is able to deal with all of a client’s requirements. If you are looking for  such a solicitor then look no further than ABV Solicitors, who are experienced and have a professional yet friendly approach to dealing with all your concerns.

What is fraud?

Fraud has been legally defined as an act committed that is intentionally deceptive and is designed to cause the victim to suffer a loss or for the criminal to make a gain. It is where facts get falsely represented in order to make an unfair gain or advantage that would not have been possible without the false representation. There are a number of different types of fraud that your fraud solicitor will be able to give you advice on, assist you with and represent you for. The key common types of fraud that we often experience include tax fraud, bankruptcy fraud, credit card fraud and securities fraud. Fraud related crimes can either be committed by an individual, group of individuals or a business as a whole.

What is tax fraud?

A fraud solicitor often faces tax fraud in their day-to-day work. Tax fraud refers to the theft of taxes that are owed and due to HM Revenue and Customs and also includes the false claims made for tax credit payout. Tax fraud is a broad crime covering tax evasion, making false claims, smuggling goods and failing to pay VAT. In 2017 it was reported that there was approximately £5.3 billion worth of tax evasion which triggered the government to toughen up on tax evasion and tax fraud in general, giving more powers and making it easier to prove guilt. Tax evasion has been defined as being the deliberate and dishonest non-payment of tax that is legally owed to the government. Tax evaders will do this by either taking advantage of non-existent loopholes within the law or by concealing funds in offshore accounts or falsifying accounts.

What are the penalties for tax fraud?

The penalties that tax evaders and tax criminals are likely to face if they are found guilty of committing a crime will vary depending on the severity of the crime itself. Income tax evasion penalties can lead to a summary conviction in the magistrates court where a verdict of imprisonment of up to 6 months and/or £5000 fine can be made. In the higher courts where they have more jurisdiction a tax evader can be given up to a maximum of seven years imprisonment and/or an unlimited fine. For businesses and individuals who evade paying VAT the law is slightly stricter and firmer and a magistrates court will be able to return a verdict of 6 months imprisonment and/or a fine of up to £20,000. Again in the higher courts the judge will be able to grant up to 7 years in prison and/or an unlimited fine as deemed necessary.