It's not really "innocent until proven guilty" though. You're guilty the whole time, it's just that you get off the hook if you never formally lie to HMRC. From what I understood of the original comment it's more like, innocent until you're formally challenged on it, decide to lie and are subsequently found out. That's literally a get out of jail free card.
Murder someone, don't admit it, found out -> charged
Murder someone, admit it -> charged
Dodge tax, lie about it, found out -> charged
Dodge tax, don't lie about it, found out -> not charged!
Do you know what the punitive interest rates are in these cases?
HMRC say that [0]:
"Those who try to get an unfair advantage will have to pay:
- any tax that is due
- any interest that is due
- any penalties that are due"
I can't find any information about the the penalties that have been handed out in real terms. There's potentially more to be gained by holding on to the cash and using to your advantage until you get found out (if you ever do).
Maybe it's a reasonable way for HMRC to do things but it's a bit weird that you can knowingly be in the wrong without having the risk of jail time hanging over you.
HMRC say that [0]:
I can't find any information about the the penalties that have been handed out in real terms. There's potentially more to be gained by holding on to the cash and using to your advantage until you get found out (if you ever do).Maybe it's a reasonable way for HMRC to do things but it's a bit weird that you can knowingly be in the wrong without having the risk of jail time hanging over you.
[0] http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc....