SolvedCH402706 | Charging Penalties: establishing penalty behaviour: evaluating evidence: evidence of concealment
From HM Revenue & Customs · Compliance Handbook
An inaccuracy, failure or VAT or excise wrongdoing is concealed when the person took active steps to cover their tracks by making arrangements to hide what they had done.
The act of concealment may include:
creating false invoices
backdating or postdating contracts or invoices
destroying books and records so that they are not available
creating false minutes of meetings or minutes of fictitious meetings
diverting takings into undisclosed bank accounts
invoice routing, for example the purported sale or purchase of goods through a tax haven company (with no activity undertaken by that company even though contracts exist showing the contrary) leaving profits untaxed in that company
creating sales records that deliberately understate the value of the goods sold, the balance of the full price being paid separately to the person
describing expenditure in the business records in such a way as to make it appear to be business related when it is in fact private (possibly with the supplier agreeing to change the description on the relevant invoices)
altering genuine purchase invoices to inflate their value
compiling false business accounts to support the availability of agricultural or business relief from IHT
mis-declaring the strength of alcoholic products on paperwork and accompanying documentation
Further guidance on and examples of concealment are in the technical guidance at: