Indications that the Revenue are considering bringing criminal charges against you include your being invited to formal interviews and your investigating officer having a warrant to search your premises, or being from the Special Compliance Office. However, it is common for tax debts to be settled without the Criminal Courts becoming involved. In cases of civil settlement, there will be interest charged on the outstanding tax, as well as a penalty charged for not paying it. However, these penalties are often negotiable and include the chance to appeal for a discount for full co-operation or mitigating circumstances.

Since April 2009, a single penalty regime has applied to all tax returns, intending to encourage the accurate filing of forms. It applies returns for Capital Gains Tax, Income Tax, National Insurance Contributions, VAT, PAYE, Corporation Tax and the Construction Industry Scheme. Penalties are calculated as a percentage of the tax due; although this will vary according to the behaviour that gave rise to the error in the first place. Less serious behaviour will deserve smaller penalties and errors made notwithstanding the person having taken ‘reasonable care’ will not be charged a penalty.

Not only can a solicitor instruct an accountant on your behalf, but information you provide to your solicitor is also protected under the status of legal privilege.  This privilege prevents the disclosure of any communication between you and your solicitor, provided it was confidential and in relation to gaining legal advice.  This privilege can only be offered by an accountant when under the instruction of a solicitor.  For the sake of protecting yourself and your information, a solicitor is a much safer choice.  Furthermore, if you are found guilty, a solicitor can help negotiate the terms of your repayments, as well as attending any searches and interviews.  When it comes to legal situation, seek legal advice – not financial advice.

If you are the subject of such an investigation, representation by one or more business solicitors is highly advisable throughout all proceedings, no matter how innocent you may believe yourself to be.

Fraud is committed when a company (or individual) dishonestly fails to disclose information or makes a false representation in order to make a gain or cause a loss.  The definition includes the act of obtaining services which require payment, without the intention to make the necessary payment.  Including the bribery, counterfeiting, forgery, credit card fraud, embezzlement, money laundering and banking fraud, serious fraud is about the largest and area of crime within the business sector.  White collar crime or serious fraud also normally involves the offender being accused of being part of a conspiracy, or an agreement between people to commit an offense.  Even if you yourself are not guilty of these offences, there is never a guarantee that a college may have been acting unlawfully – make sure you protect yourself.