A rule change introduced by HMRC has blocked taxpayers accused of suspected tax fraud from co-operating with revenue officials to try and clear their name before a criminal or civil investigation is launched. Previously taxpayers who believed they were innocent had the option to co-operate with HMRC to try and put things right. However, this option has been phased out. Instead individuals have two options: either admit or deny the allegations made. Those who plead not guilty will be investigated straight away, which could lead to a prison sentence. Accountants warned the move will lead to a “significant” increase in the number of criminal prosecutions against tax evaders.
The Daily Telegraph (03/07/2014)
