Fraudulent Evasion of Income Tax
Date Produced: 1 December 2009
Title: Revenue Offences
Offence: Fraudulent Evasion of Income Tax
Legislation: Section 144 Finance Act 2000
Mode of Trial: Either Way
Statutory Limitations & Maximum Penalty: 7 years
Seriousness and Aggravating Factors:
- The planning of an offence
- High level of profit from the offending.
- Offenders operating in groups and gangs
- Whether others were drawn in and corrupted
- 'Professional offending'
- An attempt to conceal or dispose of evidence
- Offending carried out over a significant period of time
- Use of another persons identity
- Abuse of position of trust
Mitigating Factors
- A prompt plea of guilty
- Peripheral involvement
- Behaviour not fraudulent from the outset
- Misleading or incomplete advice
- Voluntary cessation of offending
- Complete and unprompted disclosure of the extent of the fraud
- Voluntary restitution
- Financial Pressure
Relevant Sentencing Guidelines
The Sentencing Guidelines Council Sentencing for Fraud (statutory offences)
Guidelines to Fraudulent Evasion of Income Tax under S144 for the Finance Act 2000
NOTE: Where the actual amount is greater or smaller than the figure on which the starting point is based, that is likely to be one of the factors that will move the sentence within the range.
Fraudulent from the outset, professionally planned and either fraud carried out over a significant period of time or multiple frauds
£500,000 or more (SP based on £750,000): SP: 5 years custody, Range: 4-7 years custody
£100,000 or more, and less than £500,000 (SP based on £300,000): SP: 4 years custody, Range: 3-5years
£20,000 or more, and less than £100,000 (SP based on £60,000): SP: 2 years custody, Range: 18 months - 3 years custody
Fraudulent from the outset and either fraud carried out over a significant period of time or multiple frauds
£500,000 or more (SP based on £750,000): SP: 3 years custody Range: 2-6 years custody
£100,000 or more, and less than £500,000 (SP based on £300,000): SP: 2 years custody Range: 12 months - 3 years custody
£20,000 or more, and less than £100,000 (SP based on £60,000): SP: 36 weeks custody, Range: 12 weeks - 18 months custody
£5,000 or more, and less than £20,000 (SP based on £12,500): SP: 6 weeks custody, Range: Community Order (Medium) - 26 weeks custody
Less than £5,000 (SP based on £2,500): SP: Community Order (Medium) Range: Fine - Community Order (high)
Not fraudulent from the outset and either fraud carried out over a significant period of time or multiple frauds
£500,000 or more (SP based on £750,000): SP: 3 years custody, Range: 2-6 years custody
£100,000 or more, and less than £500,000 (SP based on £300,000): SP: 2 years custody, Range: 12 months-3 years custody
£20,000 or more, and less than £100,000 (SP based on £60,000): SP: 36 weeks custody, Range: 12 weeks - 18 months custody
£5,000 or more, and less than £20,000 (SP based on £12,500): SP: 6 weeks custody, Range: Community Order (Medium) - 26 weeks custody
Less than £5,000 (SP based on £2,500): SP: Community Order: (Medium), Range: Fine -Community Order (High)
Single fraudulent transaction, fraudulent from the outset
£20,000 or more, and less than £100,000 (SP based on £60,000): SP: 26 weeks custody, Range: 6 weeks - 12 months custody
£5,000 or more, and less than £20,000 (SP based on £12,500): SP: Community Order (high), Range: Fine-18 weeks custody
Less than £5,000 (SP based on £2,500): SP: Community Order (low), Range: Fine - Community Order (medium)
Single fraudulent transaction, not fraudulent from the outset
£20,000 or more, and less than £100,000 (SP based on £60,000): SP: 12 weeks custody, Range: Community Order (medium) - 36 weeks custody
£5,000 or more, and less than £20,000 (SP based on £12,500): SP: Community Order (medium), Range: Fine - 6 weeks custody
Less than £5,000 (SP based on £2,500): SP: Fine, Range: Fine-Community Order (low)
The Council considered it unlikely that more than £100,000 could be obtained in a benefit fraud, unless the offence was professionally planned and either carried out over a significant period of time or through multiple frauds.
The presence of one or more aggravating factors may indicate a more severe sentence within the suggested range while the presence of one or more mitigating factors may indicate a less severe sentence within the suggested range.
The presence of aggravating or mitigating factors of exceptional significance may indicate that the case should move to a higher or lower level of seriousness.
Relevant Sentencing Case Law
The Court of Appeal has indicated in R v Tongue (Ross) [2007] EWCA Crim 561 that "once guidelines have been issued it should be the exception rather than the rule to cite previous cases".
Ancillary Orders:
- Confiscation Orders
- Compensation Orders
- Financial Reporting Orders
- Director's Disqualification Orders
Consider also: Deportation
