August 2007

Offshore Disclosure – HMRC Follow Up

Recently in enews we reported what has been widely reported in the press as HMRC’s ‘Tax Amnesty’. As previously explained the term amnesty is misleading as it only applies to the penalty that would be charged on undeclared tax relating to the offshore accounts, which HMRC have promised to cap at 10% if a voluntary disclosure is made. HMRC could in theory impose a 100% penalty. The tax and penalties due will need to be paid by 26 November 2007.

The deadline for notifying an intention to disclose passed on the 22 June. HMRC say they had some 70,000 disclosures by that date. They apparently hold 400,000 pieces of information, so HMRC believe that a number of individuals may still have things to discuss.

HMRC suggest they will seek punitive penalties if they discover non-disclosure and, in some cases, prosecute. However, if an individual has something to disclose there is considerable merit in meeting the November reporting deadline. It will be very difficult to sustain an argument for higher penalties if the report and payment is made by the end of November.

To minimise any liabilities it is important that anyone who is concerned that they may have something to disclose gets in touch with us as soon as possible.

Internet Link:

HMRC website