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Time running out for tax amnesty
Time is running out for individuals who have been evading UK taxes by stashing money offshore. The deadline is looming to take advantage of an amnesty, warns Paul Edwards, director of taxation at accountants and business advisers Horwath Clark Whitehill. He said the so-called New Disclosure Opportunity represented a final chance to own up, pay taxes owed together with interest – yet face a penalty of only 10 per cent. “In the first Offshore Disclosure Facility in 2007, HM Revenue & Customs obtained details of offshore bank accounts from the five main high street banks,” he said. “If any customer received a letter but did not report his or her offshore bank accounts in the 2007 opportunity, it’s still possible to make a disclosure under the new opportunity, but they will face a 20 per cent penalty. “It’s intended as a disclosure route for those tens of thousands of UK residents who own property or other overseas assets which generate income.” He said registration of the intention to make a disclosure had to be made by November 30. Mr Edwards warned that HMRC had recently secured a blanket order to obtain information from 308 financial institutions about customers who held offshore bank accounts. “That mean HMRC will shortly possess a vast amount of information regarding affected individuals.” Mr Edwards said this move by HMRC has been followed by the finalisation of a groundbreaking Tax Information Exchange Agreement between the UK and Liechtenstein. “It is abundantly clear that HMRC is truly flexing its muscles in respect of offshore tax issues. “This is a prudent time to regularise tax issues which stem from undeclared income connected with offshore bank accounts, overseas assets or Liechtenstein assets and investments.” For further information, please contact Miriam Sherwood on 01562 60101 or email miriam.sherwood@horwath.co.uk |
