VAEC2990 - Section 73(1) and 73(2) assessments: Evasion

The procedural guidance in this manual only covers the VAT Mainframe and VISION processes. For guidance on the Making Tax Digital and ETMP processes for fully migrated customers, see VAEC0200 and the Making Tax Digital for VAT compliance toolkit.

You should consider the possibility of evasion in cases where an under-declaration of tax is involved.

Although you need to be mindful of the assessment time limits, and especially the one year ‘evidence of facts’ Rule, see VAEC1300, you should not issue an assessment prematurely in cases where evasion is suspected.

Further guidance on this aspect is contained in the  Civil evasion penalties for Customs, Excise and VAT manual.

In all cases where inaccuracies have been made by a trader you should consult Schedule 24 penalties guidance contained in CH80000.