Tax & Accounting News

Offshore accounts - still time to disclose

18/03/2008

The recent well-publicised decision by HM Revenue and Customs to buy information on bank accounts held in Liechtenstein has refocused attention on their determination to identify all offshore accounts which may contain funds on which tax has not been paid.

The list of apparently 100 names in which HMRC are interested will only be a starting point for their enquiries. Germany has, of course, also obtained a great deal of information from the same source and may well exchange relevant information with the UK. HMRC have no doubt already identified individuals for investigation as a result of this exercise.

Meanwhile, phase 2 of HMRC’s own information-gathering project is underway, with letters having been sent to 170 more financial institutions, requesting details of offshore account holders.

Although the formal “Offshore Disclosure Facility” closed last year, any individuals who hold offshore accounts that contain funds on which tax has not been paid should still take the first step and contact HMRC, as this may result in a reduced or nil penalty. Anyone who has such an account should take advantage of this window of opportunity while it still exists – HMRC are now issuing letters to individuals as a result of phase 1 of their project, in which they obtained information from high street banks, and a penalty reduction for disclosure will decrease or disappear once HMRC initiate an enquiry.

If you have any concerns, please contact us as soon as possible so that we can help to minimise any tax, interest or penalties that may be due.