Too good to be true?

Andrew Watt is Managing Director, Tax Disputes & Investigations, Alvarez & Marsal Taxand UK, LLP (+ 44 (0) 20 7715 5200, awatt@alvarezandmarsal.com)

Those committing serious tax fraud in the UK are unlikely to be discovered doing so and those who are run little risk of being criminally investigated and successfully prosecuted, writes Andrew Watt of Alvarez & Marsal Taxand UK. At any one time, the Specialist Investigations Office of HM Revenue and Customs (HMRC) is conducting approximately 700 serious fraud investigations with a view to a civil settlement. Considering most of these cases take considerably in excess of 12 months to be settled, this is an extremely modest number of serious investigations relative to the total taxpaying public – hence the small risk of discovery.