What does section 104 of the Taxes Management Act 1970 do?

Section 104 establishes that the Taxes Acts do not override or interfere with criminal proceedings for any misdemeanour. It acts as a safeguard ensuring that tax legislation does not inadvertently prevent or restrict criminal prosecutions, unless a specific provision within the Taxes Acts expressly states otherwise.

Can a taxpayer face both tax penalties and criminal prosecution for the same conduct?

Yes. Section 104 confirms that HMRC's civil powers under the tax code run in parallel with criminal law. A taxpayer who has underpaid tax through dishonest conduct, such as submitting fraudulent invoices, could face both a tax penalty from HMRC and a separate criminal prosecution through the courts.

Are there any exceptions where the Taxes Acts do affect criminal proceedings?

The only exception is where another provision within the Taxes Acts specifically states that criminal proceedings are affected. In practice, such exceptions are rare, and the default position under section 104 is that criminal law operates entirely independently of the tax code.

What does the term misdemeanour mean in the context of section 104?

The term misdemeanour refers historically to a category of criminal offence. In the context of section 104, it underlines that criminal proceedings for offences such as fraud or forgery remain fully available and are not displaced by the existence of civil tax penalties or other consequences under the Taxes Acts.

Taxes Management Act 1970 section 104

Saving for criminal proceedings

Section 104 establishes that the tax legislation does not override or interfere with criminal proceedings, unless a specific provision says otherwise.

The Taxes Acts do not affect criminal proceedings for any misdemeanour
This principle applies broadly across all tax legislation
An exception exists only where a specific provision expressly states otherwise
Criminal law remedies remain fully available alongside tax law provisions

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