A BURY tax specialist says the Inland Revenue is taking a tough new line with fraudsters.

Mr Alan McCann, director of tax at Bury-based business advisers DTE, says the Revenue is increasingly using its powers to confiscate assets obtained with the proceeds of tax evasion.

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 repay any benefits obtained as a result of the offence -- or face spending even more time in prison."

He went on: "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."

He explained: "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 £1m of tax owed, but also the additional £1m accumulated from the property investment."