HMRC caps offshore penalty at 10%
02 Jun 2009, Judith Tydd, AccountancyAge
http://www.accountancyage.com/aa/news/1747367/hmrc-caps-offshore-penalty
HM Revenue and Customs has confirmed there will be a 10% penalty for UK taxpayers who voluntarily disclose unpaid tax on accounts held offshore.
A spokesman for HMRC said that the 10% penalty on the outstanding tax owed, plus interest, for the second amnesty will only apply to taxpayers who were not covered by the first amnesty in 2007. This targeted the five major retail banks - Barclays, HSBC, HBOS, Lloyds and RBS.
The spokesman said that those who had previously had an opportunity to come forward will be subject to a higher penalty, but was unable to confirm what this is likely to be.
'This is the last chance for people with offshore assets to get things sorted in an advantageous way,' he said.
The spokesman said for all first-time disclosures, the penalty is strictly 10%, irrespective of the amount of undeclared funds.
'It's the behaviour we're interested in, not the amount of money,' he said.
Further Reading:
© Incisive Media Investments Limited 2012, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
Visitor comments
Surely all taxpayers could have used the first amnesty?
I find it odd that HMRC are offering 10% here, given that all taxpayers could have used the first amnesty, regardless of who they banked with and regardless of what was the source of the undisclosed income.
And where is the prosecution that was promised by HMRC to back all this up?
Posted by: Miffed , 03 Jun 2009 | 00:00
10% Give Away
What planet are HMRC on? 10% for promted disclosure and deliberate concealment! And on the second promt mind. How can this be fair to honest taxpayers. Perhaps the Telegraph have another Juicy story to release?
Posted by: Spike , 03 Jun 2009 | 00:00
Re anthony Flynn Comment above
I don't believe you. But then what do I know.....
Tom McManners BSc ACA ACMI (tom@ttca.co.uk)
Director TTCA Ltd- Chartered Accountants
Posted by: Tom McManners , 03 Jun 2009 | 00:00
Avoiding Direct Taxation by Westminster.
It is legally possible to ignore all demands by Westminster, for the payment of Taxation by using the basic manoeuvre that John Burt used when taking up employment with the BBC, as DG. He registered himself as a "business" and used an address off-shore. The BBC. then paid all money due, the the address off-shore free of all deductions. Leaving John Burt to nominate his own level of Taxation.
Now, with adjustments, a similar opportunity is available to all Taxpaying Employers and Employees.
Kind Regards, ATFlynn,
"Norfolk's Mutineer"
http://wwwanthony-flynn.blogspot.com
Posted by: Anthony Flynn , 03 Jun 2009 | 00:00