CPS to crack down on tax evasion

A populist move, which may be less popular than expected.

The head of the Crown Prosecution Service, Keir Starmer, has told the Financial Times that he is planning to increase fivefold the number of tax evasion cases the organisation takes on. Caroline Bingham writes:

Tax consultants who push dishonest avoidance schemes – and the professionals who invest in them – are central targets in the strategy. 

“There have been some cases involving lawyers, some involving tax consultants, and plumbers,” Mr Starmer said in an interview. “Within the ramped-up volume, it’s intended that we will select cases to send a clear message as to the breadth of our coverage.”

The FT reports that there were just 200 convictions secured in 2010, even with a conviction rate of 86 per cent. We can infer from those figures that the CPS only takes on cases where it has a very strong expectation of success, which is a different operating procedure from most other crimes which it prosecutes.

The tough stance of the CPS is matched by an equivalent stance from HMRC as both organisations try to crack down on the estimated £14bn a year lost to evasion.

Part of the plan is to explicitly pick cases which are harder to prosecute to make it clear that any type of tax evasion — not just the easy-to-prove cases — may be subject to prosecution. In addition, the CPS will apparently be prosecuting "everyday" tax evasion — that is, rather than just going after the most egregious offenders, it will prosecute people who match the typical profile of a tax evader. Starmer told the FT:

There have been some cases involving lawyers, some involving tax consultants, and plumbers. Within the ramped-up volume, it’s intended that we will select cases to send a clear message as to the breadth of our coverage.

The news is undoubtedly a success of sorts for campaigning groups like UKUncut, which has focused on tax evasion and avoidance and a source of missing income for the nation since 2010. There is now crystal-clear acceptance on the part of some of the most conservative institutions in government that it is unacceptable to be cutting public services while not putting as much effort as possible into securing revenue.

But the way the CPS intends to go about this new policy may be a double-edged sword. UKUncut has historically focused on the biggest individual cases, like Vodafone, which it alleges avoided £6bn in tax, or Topshop owner Philip Green, who the group claims avoided £285m.

The CPS plans to go after the exact opposite. Those hit will likely be self-employed people failing to declare all their income, as well as those more explicitly evading tax. It is harder to frame such a crackdown as the rich stealing from the poor given at least some of those evaders will themselves be earning little.

That's not to say that the CPS isn't pursuing a progressive strategy in implementing its new prosecution plan. But it may turn out being less populist than it, or the protest groups who have pushed for it, planned.

Keir Starmer. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Sacked Hilary Benn rules out standing for leadership but tells others "do the right thing"

Hilary Benn was sacked from Jeremy Corbyn's Shadow Cabinet overnight.

Hours after being sacked from Labour's Shadow Cabinet, Hilary Benn popped up again to issue a not-so-coded call for revolution. 

Despite being tipped as a potential rival to Jeremy Corbyn in the past, Benn downplayed his own ambitions and ruled himself out of standing for leader.

But while he described his decision to speak out as a personal one, he made it clear others who felt similarly should speak out.

Benn told Andrew Marr: "I have been a member of the lab party for 45 years. I've devoted my personal and political life to it, and if things are not working I think we have a wider responsiboility to the party that we love to speak out.

"Lots of people will say this isn't an ideal time. There's never an ideal time. I thought it was important to speak out."

Describing Corbyn as a "good and decent man", Benn said he was not a leader and agreed he should consider resigning: "I no longer have confidence in him and I think the right thing to do would be for him to take that decision."

He added: "I am not going to be a candidate for the leader of the Labour party. I haven't taken this decision because I want to. I have taken the decision becauuse I think it's the right thing to do for the Labour party."

As Benn was speaking, rumours of a Shadow Cabinet revolt was mounting, with Labour's last Scottish MP Ian Murray among those expected to resign.

But while there's no doubt Benn has the support of many of his fellow MPs, more than 169,000 ordinary members of the public have signed a petition urging support for Corbyn after Brexit. If there is a parliamentary coup, it's going to be bloody.