VAT Investigations
Being investigated by Customs & Excise because they think your VAT returns or import declarations are false is stressful and expensive. Customs prosecute businesses and individuals who fraudulently evade VAT or other duties where the tax involved is substantial or the case merits court action, but in the main they deal with cases of suspected fraud under the civil evasion procedures.
The penalty for evasion is heavy and can be anywhere between 20% and 100% of the tax evaded depending on the co-operation which the taxpayer extends to the investigators. Directors or Managing Officers of limited companies can also be penalised personally if their conduct brought about the evasion.
We have been able to assist many businesses by reducing the level of VAT arrears, mitigating the level of penalty imposed and in some cases bringing about the cessation of an investigation. Some highlights are:
- Thames Valley retailer's tax and penalty bill was reduced by over £120,000
- London Chinese restaurateur's arrears were halved and the penalty withdrawn
- Chinese Takeaway proprietor's liability was reduced by over £100,000
- Evasion action by Customs was completely abandoned on a machine sales business.
We also provide a technical assistance service to solicitors whose clients are involved in criminal prosecutions.
If you are concerned about a current or impending investigation and you would appreciate a consultation, please contact our Director John Crawford.