NCJ Number
174224
Journal
Journal of Financial Crime Volume: 4 Issue: 2 Dated: November 1996 Pages: 161-168
Date Published
1996
Length
8 pages
Annotation
This article considers the general background to tax evasion in the United Kingdom, why it is a crime, and the relationship between tax evasion and money laundering.
Abstract
Losses to governments from tax evasion far exceed total losses from all other forms of economic crime. This is due to the fact that few criminals believe in paying tax on the profits of their criminal enterprises. In the mid-1970s the British Government recognized the magnitude of losses from tax evasion and began an extensive program to increase the investigative powers available to the revenue authorities and to encourage them to become far more aggressive and proactive than had been the case. Over the same period, the judiciary noticeably changed its attitude toward tax evaders who appeared before the criminal courts. Much larger fines and much longer sentences are now regularly imposed. The most effective way to deal with the complex and serious problem of tax evasion is through a multi- agency approach. This will involve the exchange of information and, if necessary, the pooling of resources to counter the problem in the most efficient manner. This article describes various means that are being used to address tax evasion in Great Britain, including the European Directive on money laundering, UK domestic legislation, UK Treasury assurances, and the British Bankers Association circular. The author advises that there is little evidence that the introduction of legislation has had any material effect on organized crime in Great Britain. If the legislation is to become an effective deterrent, it can be only as a result of successful and high-profile prosecutions. 9 references