V5.301 Civil penalty or criminal prosecution
HMRC often considers imposing a civil penalty when it is aware of a VAT compliance issue. Alternatively HMRC can consider conducting a criminal investigation. Although HMRC can decide to conduct a criminal investigation, it is not responsible for deciding if a case will be criminally prosecuted. Whether or not a case will be criminally prosecuted is a decision for the independent prosecution authorities1.
Examples of circumstances where HMRC may consider starting a criminal rather than civil investigation include2:
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•ÌýÌýÌýÌý cases of organised criminal gangs attacking the tax system or systematic frauds where losses represent a serious threat
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Web page updated on 17 Mar 2025 15:07