It is our general practice to accept a money settlement, rather than institute proceedings before the Royal Court.
We can't give an undertaking as to whether or not we will accept a settlement in a particular case.
We will take into account a full confession and your level of co-operation.
When calculating the settlement, we will reduce by reference to the following.
If you make a complete and spontaneous disclosure before being challenged, you will get the full reduction. On the other hand, if you deny until the last moment that there is anything wrong, it is unlikely that you will receive any reduction in this respect.
The amount of the reduction depends on the extent to which you have been prepared to co-operate to help bring the investigation to a speedy conclusion.
If you supply information promptly, attend interviews when requested and answer questions honestly and accurately, you will get a considerable reduction for your co-operation.
If you do not supply information, avoid attending interviews, give untrue answers to questions and generally obstruct the course of the investigation, you will get little or no reduction.
Size and gravity
If the amount of the tax is small and resulted from a minor degree of negligence, you will receive a considerable reduction. On the other hand, if the tax is large and the offence serious it is unlikely you will receive any reduction.
A sum representing 'interest' on late payment is included in the proposed money settlement. The size of the interest will vary with the length of time over which the tax has remained unpaid.
If the matter is to be settled by means of a money settlement, you will have to sign a formal letter of acceptance and agree to make settlement within a stated period.
If you fail to honour that agreement, we will take legal proceedings against you for the recovery of the settlement.
If you're found guilty in the Royal Court of an offence committed fraudulently, you will be liable to imprisonment for up to 15 years and the court may also impose a fine.
This is in addition to any tax due.
For returns received after 2019 there are civil penalties for careless and deliberate behaviour.
Penalties for inaccurate declarations