HMRC is entering into fewer agreements that save taxpayers from prosecution for tax avoidance in exchange for paying back tax and penalties, law firm Pinsent Masons has claimed.

According to HMRC data, the number of agreements under the Contractual Disclosure Facility entered into by HMRC fell 10 percent in the year ended 31 March 2019 to 438 from 486 in 2017/18. This is also a 20 percent decrease since 2016/17.

Pinsent Masons argued the fall in agreements has raised concerns that HMRC is becoming increasingly reluctant to let tax evaders settle their affairs.

If HMRC enters into an agreement under the Contrac...