Prosecutions of individuals enabling tax evasion have drastically decreased by at least 75% over the past five years, with fewer than five criminal cases documented in 2023-2024, according to figures obtained by the Bureau of Investigative Journalism. This steep decline undermines HM Revenue & Customs’ (HMRC) strategy to combat tax avoidance and evasion, which targets anyone knowingly assisting clients in evading tax. The Labour government had hoped to bolster public finances by billions through their crackdown on these activities. The figures reveal a significant drop from 16 prosecutions in 2018-2019 to fewer than five in recent years. HMRC previously cited an incorrect figure of 29 for 2018-2019, sparking controversy and concerns about the reliability of HMRC data. Critics argue that the lack of transparency and the low rate of prosecutions indicate a lack of effort in tackling tax evasion enablers effectively. Experts suggest that the current situation may encourage more tax evasion due to the perceived low risk of prosecution. Despite these challenges, HMRC maintains that tackling enablers remains a priority, with over 150 currently under criminal investigation. The controversy highlights the ongoing struggle between maintaining confidentiality and ensuring public trust in tax enforcement efforts.
Source: https://www.theguardian.com/business/2025/mar/30/prosecution-of-people-who-help-clients-evade-tax-in-uk-falls-by-75-in-five-years
