Over the last four years, the average sentence length for these criminal tax evaders has dropped by around 60%, from 41.3 months in 2011 to 17.7 months in 2014.
In the same period, the total number of tax evaders given a custodial sentence has risen by around 30%; from 171 in 2011 to 220 in 2014.
Pinsent Masons said that the figures together suggest HMRC is making broader use of its prosecution powers and pushing for maximum punishment in a wider range of tax evasion cases.
Many who are guilty of offences which might previously have resulted in a simple financial penalty, are now facing jail, it said.
Fiona Fernie, partner and head of tax investigations at Pinsent Masons, said: “The figures reflect the great deal of pressure being placed on the Revenue – by both politicians and the public- to show zero tolerance when it comes to tax evasion.”
She added that HMRC is also likely to be coming down harder on taxpayers who have been offered settlement terms in return for a full declaration of any unpaid tax – in the course of a COP9 investigation or via an offshore disclosure facility such as the Liechtenstein Disclosure Facility, for example – but have failed to fully disclose.
COP9 investigations are opened where HMRC suspects serious tax fraud. Targets are offered a guarantee that HMRC will not commence a criminal investigation in exchange for a full disclosure of any unpaid tax via the Contractual Disclosure Facility.
