Banks reveal offshore company and trust details to HMRC

HMRC's tax 'amnesty' is wider-ranging than previously believed, with banks providing the taxman details of accounts held by offshore companies and trusts with a connection to UK individuals, warns PKF.

PKF tax investigations partner John Cassidy said the firm had come across instances of banks supplying account details for offshore companies and trusts, which is a wider provision of information than expected, and individuals will be liable for penalties if tax evasion can be proved.

'It has quickly become apparent that the banks' provision of in formation is much wider than most people expected; bank letters we have seen clearly show that they have supplied details of company bank accounts,' said Cassidy.

'Anyone who thinks their funds are still secret because they used an offshore company or trust might be in for a nasty surprise.'

But HMRC could be hindered by the amount of information it will be provided with on trusts and companies, most of which will be useless to the taxman.

'However, HMRC must have considered this and still believes it is worth while to go after company and trust cases,' said Cassidy.

HMRC's tax amnesty, known as the offshore disclosure facility , is also effective for onshore tax evasion disclosures before the 22 June cutoff date.

Tax and interest for up to 20 years of disclosure will have to be paid, along with a 10% penalty, under the terms of the offshore disclosure facility.

Further reading:

Amnesty will apply onshore

HMRC reveals tax 'amnesty'

Hit squads 'will move in after amnesty'