ABSTRACT
After an extensive period of consultation, and near unanimous disapproval from consultation respondents, the new strict liability criminal offence for offshore tax evaders was enacted in the Finance Act 2016. The aim of this chapter is to critically analyse what impact this new offence will have on prosecutions for offshore tax evasion. The chapter begins by outlining the scope of the new offence and the proposed rationale for its introduction. The second section then considers whether the new offence is likely to meet this objective, by exploring the problems formerly inherent in proving criminal intent for offshore tax evasion offences. This analysis will involve a consideration of the problems engendered by both the former and current test of dishonesty in English Law, as determined in the cases of Ghosh Ghosh and IveyIvey, with a specific focus on the difficulties encountered in the prosecution of tax evasion offences. The final part of this note considers the likely effects of combatting these difficulties using a strict liability offence, and examines whether these effects are likely to be tempered by available safeguards and defences.
