A SPATE of tax prosecutions with confiscation orders against fraudsters heralds a tough new line by the Inland Revenue, according to a Bury specialist.

Inland Revenue will increasingly use its powers to confiscate assets obtained with the proceeds of tax evasion, according to Alan McCann, director of tax at Hollins-based business advisers DTE.

He believes this marks a significant shift from previous sentencing practice which involved tax evaders simply repaying the tax they had defrauded and being fined or jailed.

Mr McCann said: "What is happening now is that on top of these sanctions, tax fraud offenders are also effectively having to pay any benefits obtained as a result of the offence, or face spending even more time in prison.

"I believe this is a reflection of Government policy which sees tax fraud in a similar light as money laundering or drug trafficking. There seems to be a shift in policy to an approach that says no-one should be allowed to benefit from crime, including so-called white-collar criminals."

Mr McCann added: "If, for example, you defrauded the Revenue of £1 million and invested this in a villa in Marbella, which became worth £2 million, a confiscation order might mean you would have to pay not only the £1 million of tax owed, but also the additional £1 million accumulated from the property investment.

"Confiscation orders were introduced by Parliament to ensure people did not profit from criminal activities and were intended to target offenders who, while they might serve a lengthy sentence in prison, could look forward to coming out and enjoying a massive nest egg accumulated from their criminal activities."

"Hopefully, most practitioners will rarely, if ever, come across a situation where a client has committed tax fraud, but good practice would be to notify clients of the fate that can await them if they are tempted to stray from the straight and narrow."