The penalties for tax evasion can be hefty but it depends on the type of crime committed. Punishments can vary from large fines to prison times. If you have been accused of VAT fraud, then the maximum conviction at a magistrate court would be a six-month prison sentence or a fine of £20,000. However, should your case reach the Crown court then it could be a seven-year prison sentence or an unlimited fine. Income tax evasion has a maximum penalty of a seven-year prison sentence or an unlimited fine. Cheating public revenue is considered an extremely serious offence and has a maximum penalty of a life sentence or an unlimited fine.