Fraud, False Accounting, Fraudulent evasion of VAT, False statement for VAT purposes, Conduct amounting to an offence
Date Produced: 1 December 2009
Title: Revenue Offences
Offences: Fraud, False Accounting, Fraudulent evasion of VAT, False statement for VAT purposes, Conduct amounting to an offence
Legislation: Fraud (Fraud Act 2006, s.1), False Accounting (Theft Act 1968, s.17), Fraudulent evasion of VAT (Value Added Tax Act 1994, s.72(1)), False statement for VAT purposes (Value Added Tax Act 1994, s.72(3)), Conduct amounting to an offence (Value Added Tax Act 1994, s.72(8))
Mode of Trial: Either Way
Statutory Limitations & Maximum Penalty: Fraud (prosecuted under Fraud Act 2006), 10 years imprisonment. For all other offences, 7 years custody
Seriousness Indicators and Aggravating Factors:
- Planning of an offence
- Offenders acting in groups or gangs
- Number involved in the offence and the role of the offender
- 'Professional offending'
- High level of profit from the offence
- An attempt to conceal or dispose of evidence
- Offending carried out over a significant period of time
- The use of another person's identity
Mitigating Factors:
- Peripheral involvement
- Misleading or incomplete advice
- Mental illness or disability of the defendant
- Youth or age, where it affects the responsibility of the individual defendant
- Behaviour not fraudulent from the outset
- Legitimate entitlement to part or all of the amount claimed
- 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 Revenue Fraud (including VAT Offences)
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 (Starting point (SP)) based on £750,000): SP: 5 years custody, Range: 4-7 years
£100,000 or more, and less than £500,000 (SP based on £300,000): SP: 4 years custody, Range: 3-5 years
£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: 4 years custody, Range: 3-7 years custody
£100,000 or more, and less than £500,000 (SP based on £300,000): SP: 3 years custody, Range: 2-4 years
£20,000 or more, and less than £100,000 (SP based on £60,000): SP: 15 months custody, Range: 18 weeks-30 months custody
£5,000 or more, and less than £20,000 (SP based on £12,500): SP: 12 weeks custody, Range: Community Order (high)-12 months custody
Less than £5,000 (SP based on £2,500): SP: Community Order (High), Range: Community Order (Low) - 6 weeks custody
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 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.
For the purposes of this guideline the Council considered it unlikely that more than £20,000 could be obtained in a single fraudulent transaction against HMRC in circumstances where the offenders intention was not fraudulent from the outset or where the claim was exaggerated.
In addition, it is unlikely that more than £100,000 could be obtained in a fraud against HMRC in circumstances where the offenders intention was not fraudulent from the outset.
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.
Sentencing Case Law
There are a number of sentencing case authorities set down by the Court of Appeal but the Court has itself 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
- Compensations Orders
- Financial Reporting Orders
- Disqualification Orders (from acting as a Company Director)
Consider Also
- Deportation
Links
Offence: Archbold 35-507
Sentencing: Current Sentencing Practice B9-2.3D - VAT frauds
Return to the Sentencing Manual index
