Shocking Tax Fraud Cases in the UK

tax fraud cases in the UK

Do you know anyone around you who you doubt is involved with tax fraud cases in the UK? This guide will let you know about the disastrous effects this practice can bring for your business when you are residing in the UK and associated with the business world as well. Some of the most shocking frauds were viral and observed over the period of the last decade in the UK. Before we get our head into the exploration of these tax fraud cases, it is suggested to have an understanding of what exactly is tax fraud, what are the consequences when you are caught for tax fraud in the UK, the penalties for tax evasion, and some popular tax fraud cases that were observed in the UK.

As per the HMRC, the definition of tax fraud is as given in follows:

“Any deliberate omission, concealment or misinterpretation of information, or the false or deceptive presentation of information or circumstances to gain a tax advantage.”

Moreover, any person who is found involved even in the planning of tax fraud in the UK is considered to be guilty. Mostly criminal gangs are found to be involved in such fraudulent activities. Usually, the reason for tax fraud plans is to gain financial benefits easily. There is a wide range of tax fraud activities in the UK especially observed in the last decade. The possible illegal tax fraud activities can include false cases of tax repayments, false cases of tax relief, the products that are taxable being smuggled without them being part of legal records, financial benefits and offshore income streams being kept hidden from the HMRC to avoid tax liabilities, the wrong submission of the tax returns on a consciously planned fraud.


AccountingFirms can assist you in managing your tax liabilities with the maximum tax relief possible. Let’s talk to one of our professionals or tax advisor about how to avoid tax fraud cases in the UK.


What is the punishment for tax law violation in the UK?

It is considered to be a serious matter when it comes to tax affairs and HMRC offers a very slim margin in this regard. The consequences of being caught in tax fraud will be strict, even more than a person can imagine in the UK. Sometimes cases of tax fraud are observed due to the lack of information and such incidents happen, however, there are cases that are planned deliberately. Moreover, HMRC assures that it will recollect the amount earned from tax fraud along with the payment of penalties.

The financial penalties and hefty fines are a major downfall to the business of the individual who is caught in tax fraud. There are a few cases that are observed to be a harsh punishment in person for the individual who is found guilty. The question that arises here is who are the people that are mostly involved in such fraud cases. Sometimes celebrities are found involved in cases of tax evasion. There are cases in which people are unknowingly doing such practices and high earners normally come on that list. Having the right kind of information will protect you to get involved in any such practices unknowingly.


Violation of the tax law in the UK

Anyone who is involved in the violation of the tax law in the UK will go through serious consequences that can cause business damage and the future will no longer be a growing opportunity. Deliberate tax frauds are at the top of the list in this regard. 200% of the due tax can be a fit example of the penalty in such cases. Some people are recorded to be jailed for such illegal activities.

In the case of VAT fraud, the same kind of actions will be taken against the criminals. The amount of fine can even go to a limit of £20,000. Once the fraud is proven against a person, the maximum limit of financial penalties will be ensured.


Popular Tax Fraud Cases in the UK

Some of the popular yet shocking cases of tax fraud in the UK are observed in the previous decade. A group of criminals that involved nine people to plan this fraud was observed in the UK. The amount of  £34 million in VAT was stolen by the criminals. The same group of criminals managed to earn an amount of £87 million by selling alcohol in an illicit manner. This case convinced people who believe in the quality of the drinks, however, the standards of quality were not met in real.

Another case was observed and again another criminal group was found involved. This time the people were fooled to invest in a scheme and it managed to earn an amount of £60 million or more through this. This was a group of two people only who used to trap wealthy investors to convince and invest in HIV cure research.

Then one case in which the group of criminals involved five individuals to plan the fraud. An amount of £107.9 million was earned by showcasing themselves as an environmental investment company. People actually invested a part of the earned money in the scheme and the rest was used by properties overseas and these properties were even declared to HMRC.


The Bottom Line

Now that we have gathered a fair amount of information about tax fraud cases in the UK, we can bring the discussion towards wrapping up. Tax fraud cases can cause serious consequences in form of fines and financial penalties once the criminals are caught.


We are committed to delivering exceptional accounting services to our valuable clients in the UK to ensure they get the most professional solution to avoid tax fraud cases in the UK.


Disclaimer: All the information provided in this article on tax fraud cases in the UK, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.