Offshore tax dodgers run out of time
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Issued on 31 January 2011 - HMRC
April 2011 penalties for offshore non-compliance - for income tax and
capital gains tax - will be linked to the tax transparency of the
country involved. There will be increased penalties in place for
under-declared income and gains from territories which do not
automatically share tax information with the UK.
Gauke, Exchequer Secretary to the Treasury, said:
game is up for those going offshore to evade tax. With the risk of a
penalty worth up to 200 per cent of the tax evaded, they have a great
incentive to get their tax affairs in order.
have given HMRC an extra £900m to tackle tax cheats because we are
prepared to act against the minority who refuse to pay what they owe.
Hartnett, Permanent Secretary for Tax, at HMRC said:
serious about tackling offshore evasion. Hiding tax liabilities
offshore believing that you will never be discovered is no longer a
new penalties will increase the deterrent against offshore
non-compliance. They build on other activity, including signing tax
information exchange agreements, requiring information about offshore
bank accounts and disclosure opportunities, including the Liechtenstein
Disclosure Facility (LDF)."
The new penalties for income tax and capital gains tax
non-compliance classify territories into three groups, which determine
what level of penalty will apply for non-compliance.
with automatic exchange of information on savings with the UK
penalty will be the same as now - up to 100 per cent
which exchange information on request with the UK
developed countries without information-sharing agreements with the UK
penalty will be 1.5 times that due under existing rules - up to 150 per
which dont exchange information with the UK
penalty will be double that due under the existing rules - up to 200
The first Self Assessment returns to which the penalties would
are those concerning the 2011/12 tax year (filed by January 2013).
Offshore Disclosure Facility (ODF) the first such offshore disclosure
opportunity ran from April to November 2007. It generated over £450m
in tax, interest and penalties with more from follow-up
success of the ODF was built on by the New Disclosure Opportunity (NDO)
which ran from 1 September 2009 until 12 March 2010.
ground breaking Liechtenstein Disclosure Facility opened on 1 September
2009 and will run until 31 March 2015. Under its terms all financial
intermediaries in Liechtenstein will require those who should disclose
their taxable assets to HMRC to do so or have their accounts closed.
The LDF is expected to generate well over £1bn by the time it closes.
information on increased penalties for offshore non-compliance can be
found at http://www.hmrc.gov.uk/news/offshore-penalties.htm
5. The designation of
territories can be found at http://www.hmrc.gov.uk/news/territories-category.htm
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Article Published/Sorted/Amended on Scopulus 2011-02-02 00:37:35 in Tax Articles