As barrister faces jail, hunt is on for more tax-evading professionals

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HMRC has vowed to step up the number of tax evaders it prosecutes

Only one Briton was prosecuted for tax evasion in 2012Getty Images

The head of criminal investigations at HM Revenue & Customs has issued a stark warning to wealthy professionals that if they cheat on their taxes “you will be caught and dealt with”.

The comments by Donald Toon come before the sentencing tomorrow of a senior barrister for failing to pay more than £600,000 of VAT, in one of the biggest cases HMRC has brought to court since it vowed to step up the number of tax dodgers it prosecutes.

Rohan Pershad faces up to ten years in prison after he was convicted this month of cheating the public revenue. The Queen’s Counsel collected VAT from his clients for 12 years but, instead of handing it on to the taxman, kept the money for himself and used some of it to buy two properties worth more than £1.5 million, prosecutors said.

Mr Toon said that the conviction had sent a clear message. “[The case] will have a direct impact,” he said. “That … no matter your professional status, you can face criminal investigation and prosecution.”

Some rich lawyers, doctors and accountants have avoided paying tax because they “arrogantly” thought HMRC would not catch them — or would not take criminal action if it did, Mr Toon said.

HMRC has been criticised for being shy of taking public action against wealthy and powerful tax evaders. Last year, for example, The Times reported that, of more than 500 Britons with undisclosed HSBC Swiss bank accounts investigated for suspected tax fraud, only one had been prosecuted.

Mr Toon dismissed suggestions that the Revenue’s criminal division was interested only in going after smaller fish. His department has another case against a barrister coming to court next month, he said, and other criminal cases against wealthy offshore account-holders were in the pipeline, although he declined to give details.

Overall, Revenue & Customs is aiming for charges against 565 individual tax evaders this year, up from 165 two years ago, Mr Toon said. That is on track to increase to 1,165 by 2015. Mr Toon’s criminal investigations unit has been increased by about 200 staff to 2,300.

Rodney Hylton-Potts