HMRC crackdown on fraud

Taxpayers could face 10 years prison for a failure to disclose information, as HMRC is to get new powers to prosecute taxpayers for fraud for deliberately failing to disclose information where they have a legal requirement to do so. Currently taxpayers can only be prosecuted for fraud for knowingly making false statements, rather than for failing to disclose information.

The new definition of fraud is set out in the Fraud Bill (2006) which is currently before Parliament.

HMRC can request information from taxpayers during the course of tax enquiries and will, in the vast majority of cases, currently just levy fines if that information is not provided. Under the Fraud Bill 2006, taxpayers could face imprisonment for intentionally failing to disclose information.