PROCEEDS OF CRIME ACT
Part 6 of the Proceeds of Crime Act 2002
Part 6 of the Proceeds of Crime Act (2002) relates to Revenue Functions. The purpose of this act is to permit the confiscation of any financial or material gain from the committing of a crime, and as tax evasion falls under the banner of a criminal offense, this could be a consequence for anybody accused of failing to declare their income or expenditure appropriately.
Invoking Part 6 of the Proceeds of Crime Act could lead to finances and assets being confiscated, like houses, vehicles or anything else purchased during the period of the investigation could be considered a proceed of illegal activity. If the proceeds of the offense are comparatively small, up to £1,000 can also be seized on the spot, which could potentially avoid any further prosecution and the necessity of a court date. However, in the event of an investigation by HMRC, leaving the country will not help – permissions can be sought to freeze, or even sell, assets while the individual is overseas.
Confiscation orders will not be invoked as the first course of action. Part 6 of the Proceeds of Crime Act dictates that it can only be invoked in the following circumstances:
- The defendant pleaded guilty or was convicted at the Crown Court.
- The defendant was committed to the Crown Court under Sections 3, 4 or 6 of the Powers of Criminal Courts (Sentencing) Act 2000.
- The defendant was committed to the Crown Court with a view to a confiscation order being considered, under Section 70 POCA 2002.
If any of the above is applicable, it must then be confirmed exactly when and where the crime or offense happened. If the criminal charge dates back to prior to 2003, different laws apply. Unpaid tax can be recovered through seizure and confiscation under proceeds of crime act.
Criminal investigations
HMRC has always taken a dim view of tax evasion, but now it is increasingly likely that any accusation of such as practice will result in an investigation
specialist investigation
If you should receive a letter from HMRC’s Specialist Investigations division, you should take this very seriously indeed and seek professional advice immediately.
proceeds of crime act
Proceeds of Crime Act relates to Revenue Functions. The purpose is to permit the confiscation of any financial or material gain from the committing of a crime
code of practice 8
COP8 investigations can be slightly confusing. HMRC’s fraud investigation act under this code, may not relate to criminal accusations of fraud
code of practice 9
Any investigations that are instigated under Code of Practice 9 will result in a criminal accusation and must be taken extremely seriously.