Crackdown, jail term for middle-class tax dodgers

London Evening Standard/London

Middle-class professionals and tradesmen are to be targeted in a new crackdown on tax evasion.

Accountants and lawyers caught masterminding multi-million-pound tax frauds were warned they face up to 10 years in jail — even if they have no previous convictions.

The clampdown is being launched amid fears that the cold snap is pushing Britain towards a triple-dip recession, with millions of families suffering financial hardship while others are swindling the taxman out of tens of thousands of pounds.

Director of public prosecutions Keir Starmer is set to say in a speech in London today: “Tax evasion has to be dealt with robustly all the time. But in a recession, when ordinary law-abiding taxpayers are suffering real hardship, the need to deter, detect and prosecute those who evade tax is greater than ever.

“There is a long-standing myth that unlike many other offences that the Crown Prosecution Service has to deal with, tax evasion is a victimless crime. But many would be outraged if money was stolen from their personal bank accounts.”

Starmer is to stress that tax evasion is costing Britain £14bn a year or £769 per family, adding: “This is money that could have been spent on schools, hospitals, firefighters, police and public services.”

He will emphasise:

Senior judges have made it clear that large-scale tax evaders can expect seven to 10 year jail sentences — even if they have no previous convictions.

The CPS aims to handle about 1,500 tax evasion cases a year by 2014-15, compared with 200 convictions in 2010-11. The conviction rate is 86%.

Accountants and other experts running dodgy tax evasion schemes will be targeted, as well as individuals, groups and criminal gangs benefiting from the scams.

The prosecution capability had been beefed up by merging the Revenue and Customs’ prosecuting office with the CPS.

Starmer added: “Within the ramped-up volume, it’s intended we will select cases to send a clear message as to the breadth of our coverage. There have been some cases involving lawyers, some involving tax consultants and plumbers.”

Jonathan Fisher QC, a tax expert, said the move was a “significant policy shift”. “Historically, the Revenue has been a reluctant prosecutor, preferring to concentrate on tax collection and bringing deterrent prosecutions only in the most blatant cases.”