View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Business
  2. Economics
21 January 2013updated 22 Oct 2020 3:55pm

CPS to crack down on tax evasion

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

By Alex Hern

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.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

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.

Content from our partners
The promise of prevention
How Labour hopes to make the UK a leader in green energy
Is now the time to rethink health and care for older people? With Age UK

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU