Special Services

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.

Our investigation specialist is Peter Baumgardt who spent 20 years with Customs & Excise as an Inspector and fraud investigator. His intimate knowledge of the methods adopted by Customs to investigate fraud and the procedures which follow make The VAT Consultancy the ideal partner to have alongside you when a serious investigation has started.

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• London Chinese restaurateur's arrears were halved and the penalty withdrawn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.