Jason Collins (Pinsent Masons) warns that businesses which fail to make adequate disclosures on tax issues might find themselves within HMRC’s sights – and potentially subject to a criminal investigation.
It is often pointed out that tax avoidance is legal whilst tax evasion is illegal. Looked at more closely this distinction can be puzzling. If the planning doesn’t work is it still legal? If so what makes unsuccessful avoidance different from evasion when in both cases the taxpayer has failed to self-assess a liability to tax?
The answer is honesty. In the typical case of fraudulent evasion the taxpayer is aware of the tax liability but acts dishonestly and tries to ‘cheat the revenue’ out of collecting it. In the typical case of unsuccessful avoidance the taxpayer honestly believes the tax is not due...
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Home >Articles > Large corporates and disclosure: beware ‘cheating the revenue’
Large corporates and disclosure: beware ‘cheating the revenue’
Jason Collins (Pinsent Masons) warns that businesses which fail to make adequate disclosures on tax issues might find themselves within HMRC’s sights – and potentially subject to a criminal investigation.
It is often pointed out that tax avoidance is legal whilst tax evasion is illegal. Looked at more closely this distinction can be puzzling. If the planning doesn’t work is it still legal? If so what makes unsuccessful avoidance different from evasion when in both cases the taxpayer has failed to self-assess a liability to tax?
The answer is honesty. In the typical case of fraudulent evasion the taxpayer is aware of the tax liability but acts dishonestly and tries to ‘cheat the revenue’ out of collecting it. In the typical case of unsuccessful avoidance the taxpayer honestly believes the tax is not due...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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